The outgoing Labour Government had set March 31, 2024 as the final day of the tax relief – and new Transport Minister Simeon Brown has said his Government will stick to that.
“This exemption was always intended to end when EVs hit around 2 per cent of the light vehicle fleet and we’re now at that point,” Brown said.
It remains to be seen just what impact the charges will have on new EV sales, which spiked in December, the final month of the Clean Car Discount.
Industry group Drive Electric fears it will be significant.
“We know the biggest barrier to the upfront capital cost of EVs is higher, so we do need to talk to the Government and see how we could put some incentives in place like other countries do,” Drive Electric chairwoman Kirsten Corson told RNZ.
There are also concerns that the measures will land a heavy blow to the nation’s bid to hit its Paris Agreement climate change target.
Both the Motor Industry Association (MIA) and Motor Trade Association (MTA), however, welcomed the move, saying it was necessary as New Zealand’s vehicle fleet electrified.
MIA chief executive Aimee Wiley told the Herald that EV owners had enjoyed a “free ride”, and it was now time that they “pay their fair share”.
Both of the major parties are aware that around $4 billion in revenue is generated each year by RUCs and petrol tax, with around half of that from the latter.
If EVs maintained their RUC exemption as New Zealand became more electric, the Crown would be left with a $2b hole in its books.
And the money can be well-spent fixing our cracked and crumbling road network.
Weather events of the past 12 months have had a severe impact on our transport infrastructure and, as MTA chief executive Lee Marshall pointed out, “The reality is that cyclones and storms are only going to occur more frequently in the future.”
It’s only right that EV and PHEV owners cough up, not just for the world’s climate future, but for our own immediate needs.
