Petrol tax takes a lot of tiger from the tank

By VERNON SMALL

Motorists have until tomorrow to fill up their petrol tanks if they want to beat an expected price rise of 4c a litre.

The Government, backed by the Green Party, plans to push up the tax on petrol from 35c a litre to 39c a litre, likely to take effect from midnight tomorrow.

The rise, which will reap about $100 million, will be used to help fund the Government's land transport package. It will include significant spending on public transport.

The package, expected to cost $740 million over three years, will be partly funded by private sector investors in toll roads.

Deputy Prime Minister Jim Anderton all but confirmed the tax rise yesterday.

"Any increase in funding to reduce congestion, fix infrastructural inadequacies and promote alternative means of transport must be paid for somehow."

The package would help regional development.

Asked why the rise would be limited to 4c a litre if it would be good for regional development, Mr Anderton said: "We invite the National Party to move an amendment to increase it."

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