The Act Occasion calls on the federal government to abolish the “unfair” highway tax on marine gasoline

The Act Party wants boaters to be able to claim refunds for fuel taxes, most of which are used on road and rail projects. Photo / Dean Purcell

The Act Party wants road taxes on recreational marine fuel to be lowered, with Auckland boaters paying 95 cents in taxes per liter to fund road and rail projects.

Traffic spokesman Simon Court has filed a petition to remove these “unfair” taxes and allow recreational boat users to reclaim them like other non-road users.

Fuel excise tax is 83 cents per liter including GST and 95 cents in Auckland due to the regional fuel tax.

The court said the problem was that most of the taxes collected went to the National Land Transport Fund for road and rail projects.

Most of the fuel sold in New Zealand is used in motor vehicles on public roads. While many non-road users and commercial operators were able to reclaim this tax, boat users could not.

Court, an Aucklander and a “boatie,” said it wasn’t fair.

“Act believes Kiwi boats deserve a fair start. They should have access to a simple web-based system for submitting receipts and reclaiming gasoline taxes used on boats, jet skis and other watercraft.

“Undrawn funds could then be used to ensure that all existing water security programs continue to receive funding.”

Act Party traffic spokesman Simon Court said the fuel tax was unfair for pleasure boats.  Photo / suppliedAct Party traffic spokesman Simon Court said the fuel tax was unfair for pleasure boats. Photo / supplied

The court said an estimated $ 30 million in fuel taxes was paid by recreational boat users, but only about $ 8 million went to Maritime NZ for water safety initiatives.

In return, Maritime NZ grants various councils and water sports organizations (such as Waka Ama and Paddle Boarding NZ) grants of approximately USD 880,000.

“These grants are a symbolic contribution compared to the petrol taxes paid by the ship’s users,” the court said.

“Other off-road users, including the commercial fishing, agricultural and construction sectors, are eligible for a refund, but recreational boats are missing out.”

The court launched the petition this week at the Auckland Boat Show.

Comment was requested from Waka Kotahi / NZ Transport Agency.

A 2020 Waka Kotahireview of fuel taxes recommended that reimbursements should not be made to recreational boat users, largely because of administrative difficulties and funding for search, rescue and safety activities in the pleasure craft sector.

“Refunding the fuel used in pleasure boats would jeopardize this regulation, which will benefit the recreational boat community,” the review said.

There was also “a very large variation” in boat numbers estimates from 160,000 to more than 500,000, which would make it difficult to “gauge the operational and administrative implications of introducing a new recreational boat fuel entitlement”.