A tax partner with PricewaterhouseCoopers says removing GST on petrol has superficial appeal, but would not bring prices down.
The Automobile Association wants the government to scrap the tax on fuel to provide some relief for motorists facing soaring petrol prices.
But John Shewan, Pricewaterhouse, says it's not a sensible idea. He says removing GST on fuel would push up personal tax.
On Tuesday, BP and Caltex hiked petrol prices by three cents - tipping 98 over the $2.00 mark.
91 has moved from $1.86 to $1.89 and 98 is now $2.03.
Diesel has jumped five cents from $1.52 to $1.57.
Caltex says it's only raised prices at stations owned by the company, which is less than 10% of Caltex stations in New Zealand.
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