• Fuel taxes and rising pricing

    From Crash@3:633/10 to All on Tuesday, March 24, 2026 10:38:56
    Interesting to see the Government does not get more fuel tax because
    of rising pricing (from a FB post by Chris Bishop):

    -----

    Many Kiwis have asked us if the Government will receive windfall
    tax-gains as a result of rising fuel prices. Short answer: NO! It's a
    fair question though, so here's what you need to know.

    New Zealand's petrol excise tax is a fixed number of cents per litre,
    not a percentage of the pump price, so the tax take does not increase
    when fuel prices go up.

    GST revenue on fuel theoretically rises when pump prices increase, but
    we are advised that in the context of current price increases, this is
    expected be offset by reduced fuel demand and by lower discretionary
    retail spending elsewhere as households adjust their budgets.

    I know this is something many people have asked in good faith, so it?s disappointing to see Chris Hipkins making factually inaccurate claims
    in response. It's simply misleading for him to allege that the global oil-price shock will somehow benefit the Government at the expense of
    everyday Kiwis. The simple reality is that petrol price increases will
    not benefit the Government financially - in fact the opposite is more
    likely to be the case.

    We understand that the global fuel crisis is causing anxiety for many
    Kiwis. We know you are concerned about the cost-of-living. Rest
    assured, we will continue to respond carefully to make sure Government
    actions don't make this global situation worse for you here at home.
    This is a time for factual information and that's what the Government
    will keep providing you.

    -----

    So interesting to see that fuel taxed at the pump is a fixed price per
    litre, except GST. I can understand the logic that the increased GST
    take from rising fuel prices is offset by likely reduced spending
    elsewhere but this is conjecture and not fact. There are a large
    number of us living in retirement with no work-related income. The
    cost of petrol will not change my spending habits because I do not
    spend much on fuel taxed at the pump. For the record, I have a BEV
    and diesel-powered car). The ride-on and boat don't use much petrol.


    --
    Crash McBash

    --- PyGate Linux v1.5.13
    * Origin: Dragon's Lair, PyGate NNTP<>Fido Gate (3:633/10)
  • From Gordon@3:633/10 to All on Monday, March 23, 2026 23:22:00
    On 2026-03-23, Crash <nogood@dontbother.invalid> wrote:
    Interesting to see the Government does not get more fuel tax because
    of rising pricing (from a FB post by Chris Bishop):

    -----

    Many Kiwis have asked us if the Government will receive windfall
    tax-gains as a result of rising fuel prices. Short answer: NO! It's a
    fair question though, so here's what you need to know.

    New Zealand's petrol excise tax is a fixed number of cents per litre,
    not a percentage of the pump price, so the tax take does not increase
    when fuel prices go up.

    GST revenue on fuel theoretically rises when pump prices increase, but
    we are advised that in the context of current price increases, this is expected be offset by reduced fuel demand and by lower discretionary
    retail spending elsewhere as households adjust their budgets.

    I know this is something many people have asked in good faith, so it?s disappointing to see Chris Hipkins making factually inaccurate claims
    in response. It's simply misleading for him to allege that the global oil-price shock will somehow benefit the Government at the expense of everyday Kiwis. The simple reality is that petrol price increases will
    not benefit the Government financially - in fact the opposite is more
    likely to be the case.

    We understand that the global fuel crisis is causing anxiety for many
    Kiwis. We know you are concerned about the cost-of-living. Rest
    assured, we will continue to respond carefully to make sure Government actions don't make this global situation worse for you here at home.
    This is a time for factual information and that's what the Government
    will keep providing you.

    -----

    So interesting to see that fuel taxed at the pump is a fixed price per
    litre, except GST. I can understand the logic that the increased GST
    take from rising fuel prices is offset by likely reduced spending
    elsewhere but this is conjecture and not fact.

    And that is a fact. Assumptions are part of life. However if possible some effort applied to challange the assmption. Leaving it hanging or brushed
    over just leaves one thinking that the figures should be known and if they
    are not now then we need to wait until they are avaliable.


    There are a large
    number of us living in retirement with no work-related income. The
    cost of petrol will not change my spending habits because I do not
    spend much on fuel taxed at the pump. For the record, I have a BEV
    and diesel-powered car). The ride-on and boat don't use much petrol.



    --- PyGate Linux v1.5.13
    * Origin: Dragon's Lair, PyGate NNTP<>Fido Gate (3:633/10)
  • From Crash@3:633/10 to All on Tuesday, March 24, 2026 21:10:05
    On 23 Mar 2026 23:22:00 GMT, Gordon <Gordon@leaf.net.nz> wrote:

    On 2026-03-23, Crash <nogood@dontbother.invalid> wrote:
    Interesting to see the Government does not get more fuel tax because
    of rising pricing (from a FB post by Chris Bishop):

    -----

    Many Kiwis have asked us if the Government will receive windfall
    tax-gains as a result of rising fuel prices. Short answer: NO! It's a
    fair question though, so here's what you need to know.

    New Zealand's petrol excise tax is a fixed number of cents per litre,
    not a percentage of the pump price, so the tax take does not increase
    when fuel prices go up.

    GST revenue on fuel theoretically rises when pump prices increase, but
    we are advised that in the context of current price increases, this is
    expected be offset by reduced fuel demand and by lower discretionary
    retail spending elsewhere as households adjust their budgets.

    I know this is something many people have asked in good faith, so it?s
    disappointing to see Chris Hipkins making factually inaccurate claims
    in response. It's simply misleading for him to allege that the global
    oil-price shock will somehow benefit the Government at the expense of
    everyday Kiwis. The simple reality is that petrol price increases will
    not benefit the Government financially - in fact the opposite is more
    likely to be the case.

    We understand that the global fuel crisis is causing anxiety for many
    Kiwis. We know you are concerned about the cost-of-living. Rest
    assured, we will continue to respond carefully to make sure Government
    actions don't make this global situation worse for you here at home.
    This is a time for factual information and that's what the Government
    will keep providing you.

    -----

    So interesting to see that fuel taxed at the pump is a fixed price per
    litre, except GST. I can understand the logic that the increased GST
    take from rising fuel prices is offset by likely reduced spending
    elsewhere but this is conjecture and not fact.

    And that is a fact. Assumptions are part of life. However if possible some >effort applied to challange the assmption. Leaving it hanging or brushed
    over just leaves one thinking that the figures should be known and if they >are not now then we need to wait until they are avaliable.

    That is not possible. GST receipts are done on a 2-month or 6-month
    cycle. An increase of reduction on GST revenue is therefore far too
    broad to be attributable to fuel prices, unless GST revenue can be
    attributed to retail fuel sales exclusively.


    There are a large
    number of us living in retirement with no work-related income. The
    cost of petrol will not change my spending habits because I do not
    spend much on fuel taxed at the pump. For the record, I have a BEV
    and diesel-powered car). The ride-on and boat don't use much petrol.




    --
    Crash McBash

    --- PyGate Linux v1.5.13
    * Origin: Dragon's Lair, PyGate NNTP<>Fido Gate (3:633/10)
  • From Gordon@3:633/10 to All on Tuesday, March 24, 2026 23:37:41
    On 2026-03-24, Crash <nogood@dontbother.invalid> wrote:
    On 23 Mar 2026 23:22:00 GMT, Gordon <Gordon@leaf.net.nz> wrote:

    On 2026-03-23, Crash <nogood@dontbother.invalid> wrote:
    Interesting to see the Government does not get more fuel tax because
    of rising pricing (from a FB post by Chris Bishop):

    -----

    Many Kiwis have asked us if the Government will receive windfall
    tax-gains as a result of rising fuel prices. Short answer: NO! It's a
    fair question though, so here's what you need to know.

    New Zealand's petrol excise tax is a fixed number of cents per litre,
    not a percentage of the pump price, so the tax take does not increase
    when fuel prices go up.

    GST revenue on fuel theoretically rises when pump prices increase, but
    we are advised that in the context of current price increases, this is
    expected be offset by reduced fuel demand and by lower discretionary
    retail spending elsewhere as households adjust their budgets.

    I know this is something many people have asked in good faith, so it?s
    disappointing to see Chris Hipkins making factually inaccurate claims
    in response. It's simply misleading for him to allege that the global
    oil-price shock will somehow benefit the Government at the expense of
    everyday Kiwis. The simple reality is that petrol price increases will
    not benefit the Government financially - in fact the opposite is more
    likely to be the case.

    We understand that the global fuel crisis is causing anxiety for many
    Kiwis. We know you are concerned about the cost-of-living. Rest
    assured, we will continue to respond carefully to make sure Government
    actions don't make this global situation worse for you here at home.
    This is a time for factual information and that's what the Government
    will keep providing you.

    -----

    So interesting to see that fuel taxed at the pump is a fixed price per
    litre, except GST. I can understand the logic that the increased GST
    take from rising fuel prices is offset by likely reduced spending
    elsewhere but this is conjecture and not fact.

    And that is a fact. Assumptions are part of life. However if possible some >>effort applied to challange the assmption. Leaving it hanging or brushed >>over just leaves one thinking that the figures should be known and if they >>are not now then we need to wait until they are avaliable.

    That is not possible. GST receipts are done on a 2-month or 6-month
    cycle. An increase of reduction on GST revenue is therefore far too
    broad to be attributable to fuel prices, unless GST revenue can be
    attributed to retail fuel sales exclusively.

    I had not considered this aspect. After all the collection of GST is about
    the value (of the goods and services) and what they are is irrelevant to the collection of GST.




    There are a large
    number of us living in retirement with no work-related income. The
    cost of petrol will not change my spending habits because I do not
    spend much on fuel taxed at the pump. For the record, I have a BEV
    and diesel-powered car). The ride-on and boat don't use much petrol.





    --- PyGate Linux v1.5.13
    * Origin: Dragon's Lair, PyGate NNTP<>Fido Gate (3:633/10)