RUC charges

Shocking News: EVs and Plug-In Hybrids to Start Paying Road User Charges

Get ready for a major change as electric vehicles and plug-in hybrids face new road user charges! Will this impact sales? Find out here!

In a surprising turn of events, electric vehicles (EVs) and plug-in hybrids are set to start paying road user charges (RUCs) in New Zealand. This decision, which includes scrapping the clean car discount, has sparked concerns within the industry about its potential impact on sales. RUCs, traditionally paid by road users for road maintenance costs, will now apply to EVs and plug-in hybrids, ending their exemption.

EV owners are voicing their discontent, highlighting that the new road user charges will significantly increase their costs compared to petrol car owners. The government's move towards implementing distance charges on EVs has raised questions about the fairness and necessity of the new taxation. Starting from April 1, 2024, owners of electric vehicles will be required to pay road user charges, marking a significant shift in the automotive landscape.

The Taxpayers' Union Campaigns Manager has welcomed the introduction of road user charges for EVs and hybrids, advocating for a balanced tax system. However, concerns have been raised about the potential impact on climate goals due to the new charges. Without proper measures in place, the clean car market could see a slowdown, posing challenges to achieving environmental targets.

In a unique approach, EVs and diesel vehicles will be charged per kilometre, while petrol cars currently pay tax based on fuel volume. This disparity in taxation methods has led to differing costs for efficient EVs compared to petrol vehicles, creating a notable shift in the automotive taxation landscape. As the debate on road user charges for EVs continues, the implications on sales, taxation fairness, and climate objectives remain at the forefront of discussions.