Booze, fags and petrol ....always been that way
Arnold Nordmeyer was pretty good at upsetting the populous with tax increases on these
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Jeeez you're dragging up the ancient history now w69. He died 30 years ago aged 93 , but yes of religious background (Presbyterian) and Labour, perhaps Jacinda sees him as an idol .
Now that petrol has an ecologically friendly alternative there is even more political justification for taxing it hard.
It's all smoke and mirrors. Let's say Z net margin is comparable to the other players and fairly represents the situation. And let's assume the margin is cut by 50%. That means pump price would be less than 2c a litre doesn't it? Hardly worthwhile to anyone. We all know the greatest cost factor is taxes and that can't be disputed whichever way it's sliced and diced.
I'm just assuming that as a Presbytarian he hated smoking and drinking and taxed them heavily. I understand Jacinda had a Mormon upbringing though may not be in the fold at present.
Perhaps one of the bad things that might come out of the CC is forcing them the 3 larger players to share their infrastructure. It would be a big distraction from core business.
....Not only presbyterians - part of the lifestyle of many religions and non-religious people.
I think big oil is the current whipping post in NZ. Yesterday it may have been Chorus and Telcos in general. Big Supermarkets and Big Building products are in the sights too.
Labour tried to address the inequitable burden of taxation on income earners - but that was stymied with the NZF veto of a CGT. So perhaps now Labour is turning its attention to relieve the burden for those for whom fuel expense eats up a large percentage of their income.
If Labour reduced its GST and excise take on fuel, how would it replace the lost income for government and roading?
I am in this purely for yield so have I have decided to exit my stake at this stage and will reevaluate my position in due course. The political climate is simply too hostile at present and I have noted a breakdown through the 100 day MA. The blatant hypocrisy of this Government with their rampant and repeated increases in fuel taxes makes me almost physically sick.
AIR has a higher yield and is in my view a better risk-reward proposition at this point, (see my post in that thread this morning) and AIR's yield in my view is likely to be more sustainable over the very long term. FWIW that's where I redirected my capital...not much joy fighting Govt, might as well join with them with their majority stake in the airline. I have learned from my gentailier investments partnering with the Govt is much more rewarding than fighting them ! Good luck to holders.
As stated above, I will reevaluate this one down the track a bit.
looks like jacinda has reinforced the downtrend in price. charts should confirm if goes under 6