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Higher Fuel Levies Are Coming: So Why Introduce a Ute Tax?

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Taxpayers’ Union


With the headlines dominated by COVID-19, an important story escaped attention: motorists are set to pay more in ETS levies at the pump. That’s because the Government is lifting the price cap on carbon credits.

ETS levies are nothing new. But this latest move raises an obvious question: if the Government can reduce transport emissions with the ETS, why is it bothering with the new ute tax?

The ute tax is paid in addition to the ETS levies you pay at the pump, making it a double tax.

At least ETS levies are fair – the cost to the taxpayer is proportionate to the amount of emissions produced. In contrast, the planned ute tax unfairly whacks a minority of New Zealanders with disproportionate costs. It’s less about reducing emissions and more about bullying ute drivers into lifestyle change – costs and practicality be damned.

Image credit The BFD.

Climate Change Minister James Shaw needs to explain to his colleagues that, because we have an ETS, we can scrap the ute tax, along with the other costly and pointless regulatory interventions proposed by the Climate Change Commission.

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