Fuel tax
Encyclopedia
A fuel tax is an excise tax imposed on the sale of fuel
. In most countries the fuel tax is imposed on fuels which are intended for transportation. Fuels used to power agricultural vehicles, and/or home heating oil
which is similar to diesel are taxed at a different, usually lower, rate.
In the United States
, the fuel tax receipts are often dedicated or hypothecated
to transportation projects so that the fuel tax is considered by many a user fee. In other countries, the fuel tax is a source of general revenue.
nature of demand for petrol, in the short run the tax will be an effective source of revenue. In the long run, however, the demand may be more elastic, since people adjust their consumption of gas; that is, over a period of years, people will use less as the price increases (by switching to more fuel-efficient cars, public transit, cycling, walking, consolidating trips, carpooling, or traveling less). However, whether the demand for gas is high or not in the long run is an empirical question, and the price elasticity of demand may change over time, for example, as new technologies and products which are substitutes and/or compliments become available.
Many European countries such as the UK
, France
, and Italy
use a fuel tax to decrease dependence on fossil fuels (that often have to be imported), reduce traffic and reduce pollution.
In some regions of the world, differences in fuel taxes between countries result in a significant level of cross-border purchasing of motor fuel. This is particularly true in Europe, where large differences in fuel taxes, coupled with minimal or no border controls, encourage drivers to cross borders for the sole purpose of filling up their tanks with fuel. Some states, such as Luxembourg
, Andorra
, Gibraltar
, have strategically reduced fuel tax rates to attract more cross-border fill-ups, which ultimately increase tax revenue. Most countries' customs regulations permit the duty-free import of the contents of a vehicle's built-in fuel tank, but there are exceptions. Singapore
an customs officials check the fuel gauges of vehicles leaving Singapore and require that the fuel tank be at least three quarters full, in order to limit the importation of lower-taxed fuel from Malaysia.
and conserve energy. Placing higher taxes on fossil fuels makes petrol just as expensive as other fuels such as natural gas, biodiesel
or electric batteries, at a huge cost to the consumer in the form of inflation as transportation costs rise to transport goods all over the country.
Proponents advocate that automobiles should pay for the roads they use and argue that the user tax should not be applied to mass transit projects.
, the fuel tax has been a very contentious issue. Efforts by the State Council
to institute a fuel tax in order to finance the National Trunk Highway System have run into strong opposition from the National People's Congress
, largely out of concern for its impact on farmers. This has been one of the uncommon instances in which the legislature has asserted its authority.
Excise tax on motor fuel 2008–2009:
Other fuel (like avia gasoline, jet fuel, heavy oils, natural gas and autogas) prices has no excise tax.
Value Added Tax — 18% on fuel and taxes.
Full tax rate is near 55% of motor fuel prices (ministry of industry and energy facts 2006).
is levied with an excise tax. The 2007 fuel tax was € 0.684 per litre or $ 3.5 per gallon. On top of that is 19% VAT over the entire fuel price, making the Dutch taxes one of the highest in the world. In total, taxes account for 68,84% of the total price of petrol and 56,55% of the total price of diesel. A 1995 excise was raised by Dutch gulden 25 cents (€0.11), the Kok Quarter (€0.08 raise per litre gasoline
and €0.03 raise per litre diesel), by then Prime-Minister Wim Kok
is now specifically set aside by the second Balkenende cabinet
for use in road creation and road and public transport maintenance.
and an energy tax
. The total tax (including value added tax
) is, from January 1, 2011, per liter petrol.
Value Added Tax
at 20% is also charged on the price of the fuel and on the duty. An additional vehicle excise duty
, depending on a vehicle's CO2 production per kilometre, which depends directly on fuel consumption, is also levied.
Diesel for use by farmers and construction vehicles is coloured red (Red Diesel) and has a much reduced tax, currently per litre (£0.52 per imperial gallon or £0.43 per U.S. gallon).
Jet fuel used for international aviation attracts no duty, and no VAT.
can vary greatly between locales. On average, about one-third of the total price of gas at the pump is tax. Excise taxes on gasoline
and diesel are collected both federal and provincial governments, as well as by some select municipalities (Montreal, Vancouver, and Victoria
); with combined excise taxes varying from 16.2 ¢/L (73.6 ¢/imperial gal; 61.2 ¢/US gal) in the Yukon
to 30.5 ¢/L ($1.386/imperial gal; $1.153/US gal) in Vancouver. As well, the federal government and some provincial governments (Newfoundland and Labrador
, Nova Scotia
, and Quebec
) collect sales tax
(GST and PST
) on top of the retail price and the excise taxes.
vary by state. The United States federal excise tax on gasoline, as of February 2011, is 18.4 cents per gallon (4.86 ¢/L) and 24.4 cents per gallon (6.45 ¢/L) for diesel fuel. In January 2011, motor gasoline taxes averaged 48.1 cents per gallon (12.71 ¢/L) and diesel fuel taxes averaged 53.1 cents per gallon (14.03 ¢/L). For the first quarter of 2009, the mean state gasoline tax is 27.2 cents per US gallon, plus 18.4 cents per US gallon federal tax making the total 45.6 cents per US gallon (12.0 ¢/L). For diesel, the mean state tax is 26.6 cents per US gallon plus an additional 24.4 cents per US gallon federal tax making the total 50.8 cents US per gallon (13.4 ¢/L). There are also a few states and municipalities that charge sales tax on top of the excise taxes and the retail price.
The states that have a tax on their fuel, impose a tax on commercial drivers that travel through their state, even if the fuel is not purchased in that state. The paper work for this taxed on a quarterly basis and filed somewhat like a federal tax return that is done yearly. Most commercial truck drivers have an agent fill out the paper work. The driver calls in their information, the agent figures out how much tax should be paid to each state, then the agent faxes the forms to the driver and they are required to carry the papers with them along with their travel log books.
is very similar to Canada
in terms of featuring both a fixed and a variable tax, but varies in the case of exemptions including tax credits and certain excise free fuel sources. Fuel taxes are handled by both the Federal and State Governments, including both an Excise Tax and a Goods and Services Tax
or "GST". The tax collected is partly used to help fund national road infrastructure projects and repair roads, however most of it goes into general revenue.
The current fuel tax in Australia is A$0.38143 per litre for petrol and ultra-low sulphur diesel (conventional diesel being taxed at A$0.40143 per litre). An excise for LPG of $0.025 per litre will be introduced from 2011, increasing to $0.125 per litre by 2015.
are considered an excise
applied by the New Zealand Customs Service
on shipments brought into the country. A breakdown of the fuel taxes is published by the Ministry of Economic Development. Excise as at 1 October 2010 totals 48.524 cents per litre ($2.206/imperial gal; $1.837/US gal) on petrol. In addition the national compulsory Accident Compensation Corporation motor vehicle account receives a contribution of 9.34 cents/litre (42.5¢/imperial gal; 35.4¢/US gal). The ethanol component of bio blended petrol currently attracts no excise duty. This will be reviewed in 2012. Diesel is not taxed at the pump, but road users with vehicles over 1 tonne in Gross Laden Weight and any vehicles not powered wholly by any combination of petrol, LPG or CNG must pay the Road User Charge instead. This incorporates an ACC component. The Goods and Services Tax
(15%) is then applied to the combined total of the value of the commodity and the various taxes. On 25 July 2007 the Minister of Transport Annette King announced that from 1 July 2008 all fuel excise collected would be hypothecated to the National Land Transport Programme.
Fuel
Fuel is any material that stores energy that can later be extracted to perform mechanical work in a controlled manner. Most fuels used by humans undergo combustion, a redox reaction in which a combustible substance releases energy after it ignites and reacts with the oxygen in the air...
. In most countries the fuel tax is imposed on fuels which are intended for transportation. Fuels used to power agricultural vehicles, and/or home heating oil
Heating oil
Heating oil, or oil heat, is a low viscosity, flammable liquid petroleum product used as a fuel for furnaces or boilers in buildings. Home heating oil is often abbreviated as HHO...
which is similar to diesel are taxed at a different, usually lower, rate.
In the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
, the fuel tax receipts are often dedicated or hypothecated
Hypothecation (taxation)
The hypothecation of a tax is the dedication of the revenue from a specific tax for a particular expenditure purpose. Hypothecation is the pledging of assets....
to transportation projects so that the fuel tax is considered by many a user fee. In other countries, the fuel tax is a source of general revenue.
Effects
Because of the relatively inelasticPrice elasticity of demand
Price elasticity of demand is a measure used in economics to show the responsiveness, or elasticity, of the quantity demanded of a good or service to a change in its price. More precisely, it gives the percentage change in quantity demanded in response to a one percent change in price...
nature of demand for petrol, in the short run the tax will be an effective source of revenue. In the long run, however, the demand may be more elastic, since people adjust their consumption of gas; that is, over a period of years, people will use less as the price increases (by switching to more fuel-efficient cars, public transit, cycling, walking, consolidating trips, carpooling, or traveling less). However, whether the demand for gas is high or not in the long run is an empirical question, and the price elasticity of demand may change over time, for example, as new technologies and products which are substitutes and/or compliments become available.
Many European countries such as the UK
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
, France
France
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...
, and Italy
Italy
Italy , officially the Italian Republic languages]] under the European Charter for Regional or Minority Languages. In each of these, Italy's official name is as follows:;;;;;;;;), is a unitary parliamentary republic in South-Central Europe. To the north it borders France, Switzerland, Austria and...
use a fuel tax to decrease dependence on fossil fuels (that often have to be imported), reduce traffic and reduce pollution.
In some regions of the world, differences in fuel taxes between countries result in a significant level of cross-border purchasing of motor fuel. This is particularly true in Europe, where large differences in fuel taxes, coupled with minimal or no border controls, encourage drivers to cross borders for the sole purpose of filling up their tanks with fuel. Some states, such as Luxembourg
Luxembourg
Luxembourg , officially the Grand Duchy of Luxembourg , is a landlocked country in western Europe, bordered by Belgium, France, and Germany. It has two principal regions: the Oesling in the North as part of the Ardennes massif, and the Gutland in the south...
, Andorra
Andorra
Andorra , officially the Principality of Andorra , also called the Principality of the Valleys of Andorra, , is a small landlocked country in southwestern Europe, located in the eastern Pyrenees mountains and bordered by Spain and France. It is the sixth smallest nation in Europe having an area of...
, Gibraltar
Gibraltar
Gibraltar is a British overseas territory located on the southern end of the Iberian Peninsula at the entrance of the Mediterranean. A peninsula with an area of , it has a northern border with Andalusia, Spain. The Rock of Gibraltar is the major landmark of the region...
, have strategically reduced fuel tax rates to attract more cross-border fill-ups, which ultimately increase tax revenue. Most countries' customs regulations permit the duty-free import of the contents of a vehicle's built-in fuel tank, but there are exceptions. Singapore
Singapore
Singapore , officially the Republic of Singapore, is a Southeast Asian city-state off the southern tip of the Malay Peninsula, north of the equator. An island country made up of 63 islands, it is separated from Malaysia by the Straits of Johor to its north and from Indonesia's Riau Islands by the...
an customs officials check the fuel gauges of vehicles leaving Singapore and require that the fuel tank be at least three quarters full, in order to limit the importation of lower-taxed fuel from Malaysia.
Role in energy policy
Taxes on transportation fuels have been advocated as a way to reduce pollution and the possibility of global warmingGlobal warming
Global warming refers to the rising average temperature of Earth's atmosphere and oceans and its projected continuation. In the last 100 years, Earth's average surface temperature increased by about with about two thirds of the increase occurring over just the last three decades...
and conserve energy. Placing higher taxes on fossil fuels makes petrol just as expensive as other fuels such as natural gas, biodiesel
Biodiesel
Biodiesel refers to a vegetable oil- or animal fat-based diesel fuel consisting of long-chain alkyl esters. Biodiesel is typically made by chemically reacting lipids with an alcohol....
or electric batteries, at a huge cost to the consumer in the form of inflation as transportation costs rise to transport goods all over the country.
Proponents advocate that automobiles should pay for the roads they use and argue that the user tax should not be applied to mass transit projects.
Tax rates
International pump prices for diesel and gasoline for November 2010 are available at http://www.gtz.de/en/themen/29957.htm. Price history from surveys taken in November of even number years are also available. Price differences mostly reflect differences in tax policy.Asia
In the People's Republic of ChinaPeople's Republic of China
China , officially the People's Republic of China , is the most populous country in the world, with over 1.3 billion citizens. Located in East Asia, the country covers approximately 9.6 million square kilometres...
, the fuel tax has been a very contentious issue. Efforts by the State Council
State Council of the People's Republic of China
The State Council of the People's Republic of China , which is largely synonymous with the Central People's Government after 1954, is the chief administrative authority of the People's Republic of China. It is chaired by the Premier and includes the heads of each governmental department and agency...
to institute a fuel tax in order to finance the National Trunk Highway System have run into strong opposition from the National People's Congress
National People's Congress
The National People's Congress , abbreviated NPC , is the highest state body and the only legislative house in the People's Republic of China. The National People's Congress is held in the Great Hall of the People, Beijing, capital of the People's Republic of China; with 2,987 members, it is the...
, largely out of concern for its impact on farmers. This has been one of the uncommon instances in which the legislature has asserted its authority.
Russia
Tax on mineral resource extraction (2008–2009):- Oil: varies 1000 RUR/t – 13800 RUR/t; middle MRET 3000 RUR/t (0.058 €/l = 0.284 $/gal).
- Natural gas: 147 RUR/1000m³ (4 €/1000m³).
- Petroleum gas: no
Excise tax on motor fuel 2008–2009:
- RON >80: 3629 RUR/t. (0.071 €/l = 0.343 $/US gal)
- RON <=80: 2657 RUR/t. (0.052 €/l = 0.251 $/US
Other fuel (like avia gasoline, jet fuel, heavy oils, natural gas and autogas) prices has no excise tax.
Value Added Tax — 18% on fuel and taxes.
Full tax rate is near 55% of motor fuel prices (ministry of industry and energy facts 2006).
France
Petroleum products destined for utilisation by aircraft engaged in commercial flights outside of the customs territory of continental France are exempt from all customs duties and domestic taxes.Germany
Fuel taxes in Germany are €0.4704 per litre for ultra-low sulphur Diesel and €0.6545 per litre for conventional unleaded petrol, plus Value Added Tax (19%) on the fuel itself and the Fuel Tax. That adds up to prices of €1.42 per litre for ultra-low sulphur Diesel and €1.55 per litre (approximately USD 8.10 per US gallon) for unleaded petrol (November 2011).Netherlands
The sale of fuels in the NetherlandsNetherlands
The Netherlands is a constituent country of the Kingdom of the Netherlands, located mainly in North-West Europe and with several islands in the Caribbean. Mainland Netherlands borders the North Sea to the north and west, Belgium to the south, and Germany to the east, and shares maritime borders...
is levied with an excise tax. The 2007 fuel tax was € 0.684 per litre or $ 3.5 per gallon. On top of that is 19% VAT over the entire fuel price, making the Dutch taxes one of the highest in the world. In total, taxes account for 68,84% of the total price of petrol and 56,55% of the total price of diesel. A 1995 excise was raised by Dutch gulden 25 cents (€0.11), the Kok Quarter (€0.08 raise per litre gasoline
Gasoline
Gasoline , or petrol , is a toxic, translucent, petroleum-derived liquid that is primarily used as a fuel in internal combustion engines. It consists mostly of organic compounds obtained by the fractional distillation of petroleum, enhanced with a variety of additives. Some gasolines also contain...
and €0.03 raise per litre diesel), by then Prime-Minister Wim Kok
Wim Kok
Willem "Wim" Kok ; born September 29, 1938) is a retired Dutch politician of the Labour Party . He served as Prime Minister of the Netherlands from August 22, 1994 until July 22, 2002....
is now specifically set aside by the second Balkenende cabinet
Second Balkenende cabinet
The second cabinet of Jan Peter Balkenende of the Netherlands formed on 27 May 2003. It consisted of three political parties: People's Party for Freedom and Democracy , Christian Democratic Appeal , and Democrats 66 , which is the smallest of the three.On 29 June 2006, D66 dropped its support for...
for use in road creation and road and public transport maintenance.
Norway
Motor fuel is taxed with both a road use tax and a CO2-tax. The road use tax on petrol is NOK 4.62 per litre and the CO2-tax on petrol is NOK 0.88 per litre. The road use tax on auto diesel is NOK 3.62 per litre mineral oil and NOK 1.81 per litre bio diesel. The CO2-tax on mineral oil is NOK 0.59 per litre.Sweden
The fuel tax in Sweden comprises a carbon taxCarbon tax
A carbon tax is an environmental tax levied on the carbon content of fuels. It is a form of carbon pricing. Carbon is present in every hydrocarbon fuel and is released as carbon dioxide when they are burnt. In contrast, non-combustion energy sources—wind, sunlight, hydropower, and nuclear—do not...
and an energy tax
Energy tax
An energy tax is a tax that increases the price of energy . Arguments in favour of energy taxes have included the pursuit of macroeconomic objectives, e.g., fiscal deficit reduction in the 1990s, as well as environmental benefits, i.e., reduced pollution...
. The total tax (including value added tax
Value added tax
A value added tax or value-added tax is a form of consumption tax. From the perspective of the buyer, it is a tax on the purchase price. From that of the seller, it is a tax only on the "value added" to a product, material or service, from an accounting point of view, by this stage of its...
) is, from January 1, 2011, per liter petrol.
United Kingdom
From 23 March 2011 the UK duty rate for the road fuels unleaded petrol, diesel, biodiesel and bioethanol is per litre (£2.63 per imperial gallon or £2.19 per U.S. gallon).Value Added Tax
Value added tax
A value added tax or value-added tax is a form of consumption tax. From the perspective of the buyer, it is a tax on the purchase price. From that of the seller, it is a tax only on the "value added" to a product, material or service, from an accounting point of view, by this stage of its...
at 20% is also charged on the price of the fuel and on the duty. An additional vehicle excise duty
Vehicle excise duty
Vehicle Excise Duty is a vehicle road use tax levied as an excise duty which must be paid for most types of vehicle which are to be used on the public roads in the United Kingdom...
, depending on a vehicle's CO2 production per kilometre, which depends directly on fuel consumption, is also levied.
Diesel for use by farmers and construction vehicles is coloured red (Red Diesel) and has a much reduced tax, currently per litre (£0.52 per imperial gallon or £0.43 per U.S. gallon).
Jet fuel used for international aviation attracts no duty, and no VAT.
Canada
Fuel taxes in CanadaFuel taxes in Canada
In Canada, motor vehicles are primarily powered by gasoline or diesel fuel. Other energy sources include ethanol, biodiesel, propane, compressed natural gas , electric batteries charged from an external source, and hydrogen...
can vary greatly between locales. On average, about one-third of the total price of gas at the pump is tax. Excise taxes on gasoline
Gasoline
Gasoline , or petrol , is a toxic, translucent, petroleum-derived liquid that is primarily used as a fuel in internal combustion engines. It consists mostly of organic compounds obtained by the fractional distillation of petroleum, enhanced with a variety of additives. Some gasolines also contain...
and diesel are collected both federal and provincial governments, as well as by some select municipalities (Montreal, Vancouver, and Victoria
Victoria, British Columbia
Victoria is the capital city of British Columbia, Canada and is located on the southern tip of Vancouver Island off Canada's Pacific coast. The city has a population of about 78,000 within the metropolitan area of Greater Victoria, which has a population of 360,063, the 15th most populous Canadian...
); with combined excise taxes varying from 16.2 ¢/L (73.6 ¢/imperial gal; 61.2 ¢/US gal) in the Yukon
Yukon
Yukon is the westernmost and smallest of Canada's three federal territories. It was named after the Yukon River. The word Yukon means "Great River" in Gwich’in....
to 30.5 ¢/L ($1.386/imperial gal; $1.153/US gal) in Vancouver. As well, the federal government and some provincial governments (Newfoundland and Labrador
Newfoundland and Labrador
Newfoundland and Labrador is the easternmost province of Canada. Situated in the country's Atlantic region, it incorporates the island of Newfoundland and mainland Labrador with a combined area of . As of April 2011, the province's estimated population is 508,400...
, Nova Scotia
Nova Scotia
Nova Scotia is one of Canada's three Maritime provinces and is the most populous province in Atlantic Canada. The name of the province is Latin for "New Scotland," but "Nova Scotia" is the recognized, English-language name of the province. The provincial capital is Halifax. Nova Scotia is the...
, and Quebec
Quebec
Quebec or is a province in east-central Canada. It is the only Canadian province with a predominantly French-speaking population and the only one whose sole official language is French at the provincial level....
) collect sales tax
Sales tax
A sales tax is a tax, usually paid by the consumer at the point of purchase, itemized separately from the base price, for certain goods and services. The tax amount is usually calculated by applying a percentage rate to the taxable price of a sale....
(GST and PST
Sales taxes in Canada
In Canada, three types of sales taxes are levied. These are as follows:*Provincial sales taxes , levied by the provinces*Goods and Services Tax , a value-added tax levied by the federal government...
) on top of the retail price and the excise taxes.
United States
Fuel taxes in the United StatesFuel taxes in the United States
The United States federal excise tax on gasoline, as of February 2011, is 18.4¢/gal and 24.4¢/gal for diesel fuel. In January 2011, motor gasoline taxes averaged 48.1¢/gal and diesel fuel taxes averaged 53.1¢/gal, which accounted for 14% of the price of gasoline and 15% of the price of diesel.As...
vary by state. The United States federal excise tax on gasoline, as of February 2011, is 18.4 cents per gallon (4.86 ¢/L) and 24.4 cents per gallon (6.45 ¢/L) for diesel fuel. In January 2011, motor gasoline taxes averaged 48.1 cents per gallon (12.71 ¢/L) and diesel fuel taxes averaged 53.1 cents per gallon (14.03 ¢/L). For the first quarter of 2009, the mean state gasoline tax is 27.2 cents per US gallon, plus 18.4 cents per US gallon federal tax making the total 45.6 cents per US gallon (12.0 ¢/L). For diesel, the mean state tax is 26.6 cents per US gallon plus an additional 24.4 cents per US gallon federal tax making the total 50.8 cents US per gallon (13.4 ¢/L). There are also a few states and municipalities that charge sales tax on top of the excise taxes and the retail price.
The states that have a tax on their fuel, impose a tax on commercial drivers that travel through their state, even if the fuel is not purchased in that state. The paper work for this taxed on a quarterly basis and filed somewhat like a federal tax return that is done yearly. Most commercial truck drivers have an agent fill out the paper work. The driver calls in their information, the agent figures out how much tax should be paid to each state, then the agent faxes the forms to the driver and they are required to carry the papers with them along with their travel log books.
Australia
The fuel tax system in AustraliaFuel taxes in Australia
The fuel tax system in Australia is very similar to Canada in terms of its double-dipping tax rates, but varies in the case of exemptions including tax credits and certain excise free fuel sources...
is very similar to Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
in terms of featuring both a fixed and a variable tax, but varies in the case of exemptions including tax credits and certain excise free fuel sources. Fuel taxes are handled by both the Federal and State Governments, including both an Excise Tax and a Goods and Services Tax
Goods and Services Tax (Australia)
The GST is a broad sales tax of 10% on most goods and services transactions in Australia. It is a value added tax, not a sales tax, in that it is refunded to all parties in the chain of production other than the final consumer....
or "GST". The tax collected is partly used to help fund national road infrastructure projects and repair roads, however most of it goes into general revenue.
The current fuel tax in Australia is A$0.38143 per litre for petrol and ultra-low sulphur diesel (conventional diesel being taxed at A$0.40143 per litre). An excise for LPG of $0.025 per litre will be introduced from 2011, increasing to $0.125 per litre by 2015.
New Zealand
Fuel taxes in New ZealandNew Zealand
New Zealand is an island country in the south-western Pacific Ocean comprising two main landmasses and numerous smaller islands. The country is situated some east of Australia across the Tasman Sea, and roughly south of the Pacific island nations of New Caledonia, Fiji, and Tonga...
are considered an excise
Excise
Excise tax in the United States is a indirect tax on listed items. Excise taxes can be and are made by federal, state and local governments and are far from uniform throughout the United States...
applied by the New Zealand Customs Service
New Zealand Customs Service
The Customs Service is a state sector organisation of New Zealand whose role is to provide border control and protect the community from potential risks arising from international trade and travel, as well as collecting duties and taxes on imports to the country. New Zealand's Minister of Customs...
on shipments brought into the country. A breakdown of the fuel taxes is published by the Ministry of Economic Development. Excise as at 1 October 2010 totals 48.524 cents per litre ($2.206/imperial gal; $1.837/US gal) on petrol. In addition the national compulsory Accident Compensation Corporation motor vehicle account receives a contribution of 9.34 cents/litre (42.5¢/imperial gal; 35.4¢/US gal). The ethanol component of bio blended petrol currently attracts no excise duty. This will be reviewed in 2012. Diesel is not taxed at the pump, but road users with vehicles over 1 tonne in Gross Laden Weight and any vehicles not powered wholly by any combination of petrol, LPG or CNG must pay the Road User Charge instead. This incorporates an ACC component. The Goods and Services Tax
Goods and Services Tax (New Zealand)
Goods and Services Tax is a value added tax introduced in New Zealand on 1 October 1986 at 10%. It later increased to 12.5% on 1 July 1989 and was further increased to 15% on 1 October 2010....
(15%) is then applied to the combined total of the value of the commodity and the various taxes. On 25 July 2007 the Minister of Transport Annette King announced that from 1 July 2008 all fuel excise collected would be hypothecated to the National Land Transport Programme.
See also
- Carbon taxCarbon taxA carbon tax is an environmental tax levied on the carbon content of fuels. It is a form of carbon pricing. Carbon is present in every hydrocarbon fuel and is released as carbon dioxide when they are burnt. In contrast, non-combustion energy sources—wind, sunlight, hydropower, and nuclear—do not...
- Fuel taxes and rising oil prices – how the taxes of various countries could be used to mitigate the rise in oil prices since 2003
- Excise tax
- Vehicle miles traveled taxVehicle miles traveled taxVehicle Miles Traveled Tax is a policy proposed in the United States of taxing motorists based on how many miles they have traveled. It has been proposed as an infrastructure funding mechanism that would eventually replace the fuel tax.-Overview:...
- International Fuel Tax AgreementInternational Fuel Tax AgreementThe International Fuel Tax Agreement is an agreement between the lower 48 states of the United States and the Canadian provinces, to simplify the reporting of fuel use by motor carriers that operate in more than one jurisdiction. Alaska, Hawaii, and the Canadian territories do not participate...
External links
- International Fuel Prices 2009 with diesel and gasoline prices of 172 countries and information on fuel taxation for state financing
- 2011 NACS Annual Fuels Report
- Actual taxes on Unleaded and diesel Fuels in Europe