The Taxpayers’ Union is calling on the government to give boaties a break and bring fairness to how they are taxed by ending road-related taxes on marine fuel.
Taxpayers’ Union Campaigns Manager, Connor Molloy, said: “Boaties enjoying their time out on the water this summer are being hit twice by the government’s punishing 48% fuel taxes. First when they fill up the ute, and again when they fill up the boat.”
Currently, the fuel exercise duty for boating is 83 cents a litre including GST. Unless you live in Auckland, and then you’re paying an extra 12 cents a litre on top of that, bringing the cost to up to a whopping 95 cents of tax per litre.
With an extra charge added on not only petrol, but diesel, and biofuel as well, the tax is designed to raise $4.3 billion over 10 years for projects such as light rail to the airport and new roads.
However, where operators of commercial vessels can apply for refunds on the RFT, recreational users cannot.
“When Winston Peters said he’d never seen a waka on the road he was onto something. It is completely unfair that boaties should have to pay for the upkeep of roads that they don’t even drive on. Yet, The Marine Industry Association estimated the annual cost to boaties will range from about $58 for petrol-powered dinghies to $230 for moored launches and large rigid hull inflatables.
Both Peters and the government should commit to scrapping the tax on a beloved pastime of many Kiwis.
“Those using fuel for off-road commercial purposes such as fishing can already claim back their fuel tax, all we are asking is that a similar claims process be provided to recreational boaties too.”
The ACT party also believes these extra taxes are unfair and has even gone as far as putting together a petition to stop Kiwi boaties having to pay an arm and a leg just for having a fun day out on the water.