The Money or the Bag?

What would you choose? $20, or a bag containing the tax on your last tank of petrol?

Last week for the second time the government raised the amount of tax paid on your petrol. According to the Taxpayer’s Union this means that “47% of your petrol bill is now taxes (more than 50% if you live in Auckland).

Casey and I visited a Wellington petrol station to see if motorists understand how much they’re being squeezed at the pump. We offered them free money: a choice between $20, or the undisclosed amount of tax on filling their petrol tank.

Not one motorist thought to choose the tax refund, despite it being the larger sum for a typical tank of gas. This suggests we need more transparency in our tax system. If motorists don’t know how much tax they are paying, how can they judge whether they’re receiving value for their tax dollars?

The Taxpayer’s Union
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