Finance Minister Nicola Willis has defended the Government's plans to hike vehicle registration fees to pay for its $20 billion transport plan.
Yesterday, Transport Minister Simeon Brown announced the Government's plan to build 15 new motorway and highway projects, eliminate potholes, and focus on completing public transport infrastructure in Auckland and Wellington.
To help pay for the huge package, the Government has proposed increased fuel taxes from 2027 and the Motor Vehicle Licensing Fee by $50 total by January 2026.
Labour leader Chris Hipkins was highly critical of the increases and accused the Government of doing what it promised not to during the election.
"Christopher Luxon made the cost of living his number one election commitment," Hipkins said.
"He said they weren't going to be introducing any new taxes. He said they weren't going to be increasing fuel taxes.
"In fact, they're doing both of those things."
The Government has announced it will spend over $20 billion to "get transport back on track", with some funding coming from hikes to vehicle registrations and taxes on fuel. (Source: 1News)
Speaking to Breakfast this morning, the Finance Minister called the increase a "small adjustment" for a fee that "hasn't kept up with inflation".
"We committed that you would pay no extra fuel tax this term, and we are keeping that commitment.
"I get it, no one wants an increase in any fee, but this will help contribute to a massive focus on getting rid of potholes, maintaining our roads better and getting some really significant new national roads built," Willis said.
She said an increase in registration fees is far better than continued fuel taxes as it's "more painful" for road users when they fill up.
"It stings you every time you fill up."
She said: "We're going to make sure that money is going into good things."
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