A new report says our fuel tax system is outdated and unfair. 

A new report from the NZ Initiative proposes replacing the fuel excise duty with a new Smart Road User Charges system. 

Under the system all vehicles would be charged based on actual road usage, time of day, and vehicle type. 

Lead author Matthew Birchall says it would reduce congestion and ensure a fairer distribution of costs. 

He says it's a revenue-neutral system where you wouldn't pay more, but just change the source. 

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