Auckland mayoral hopeful John Tamihere’s petrol tax proposal divides experts

Friday, 23 August 2019

John Tamihere has announced his transport policy in his run for the Auckland mayoralty. (Video first published in August 2019)

John Tamihere’s promise to terminate the regional fuel tax if elected Auckland mayor has legal experts at odds.

The controversial candidate announced he would dump the 10 cent per litre petrol tax at a press conference about his road and rail transport policy on Wednesday morning.

Barrister Geoffrey Clews, who specialises in tax and trusts counselling, said the tax could only be revoked by central government.

John Tamihere announced he would scrap the regional fuel tax if elected Auckland mayor.

'Early termination of the regional fuel tax is not a matter that is within the power of the mayor,' he said.

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'As a body, on which the mayor would have one vote, Auckland Council would need to develop a proposal for early termination of the tax and submit that to central government.'

Clews said it was unlikely the government would agree to scrap the petrol tax.

'For that to happen Auckland Council would need to have significantly changed its existing infrastructure plans, which would be a substantial departure from its present long term planning.'

But solicitor Umar Kuddus said scrapping the tax was entirely achievable.

'If Tamihere wants to cancel the regional fuel tax, all the law requires him to do is put forward a proposal to the Minister [of Transport],' he said.

'There is nothing to say that Parliament would have to change the law or would stop Tamihere from making an amendment to the regional fuel tax scheme currently in place.'

Kuddus said ridiculing Tamihere for wanting to scrap the fuel tax was 'unwarranted and without basis'.

The regional fuel tax kicked in last July and is expected to raise about $1.5 billion over 10 years to go towards transport projects.

Government subsidies and development contributions will take the figure to $4.3 billion.

Tamihere said if scrapped, the loss of revenue the tax was expected to raise would be covered by central government.

The government and Auckland Council have already invested $28 billion over the next 10 years to improve transport infrastructure in the city.