People who drive light electric vehicles (EVs) and plug-in hybrids will start paying road-user charges (RUC) for them from April 1.
Transport Minister and Pakuranga MP Simeon Brown has announced the coalition Government is ending the exemption on such vehicles.
“Petrol tax and distance-based RUC are paid by road users to contribute to the costs of maintaining our roads, but EVs and plug-in hybrids have been exempted from RUC.
“Transitioning EVs and plug-in hybrids to RUC is the first step in delivering on the National-ACT coalition commitment to bring all vehicles into the RUC system.
“This transition to RUC is about fairness and equity. It will ensure all road users are contributing the upkeep and maintenance of our roads, irrespective of the type of vehicle they choose to drive.”
Brown says plug-in hybrids are powered by electricity and petrol and have had to pay petrol tax, but not to the same level as petrol equivalent vehicles.
To ensure plug-in hybrids avoid paying twice through both fuel excise duty and RUCs, these vehicles will pay a reduced rate RUC, he says.
“The previous National Government exempted EVs from paying RUC to encourage their uptake.
“This exemption was always intended to end when EVs hit around two per cent of the light vehicle fleet and we’re now at that point.
“With the increasing uptake of EVs and plug-in hybrids being brought into the RUC system, this means these vehicles will now be contributing toward the maintenance and upkeep of our roading system like all other road users and will support the Government’s priority of building and maintaining our roading network.”
Owners of light EVs and plug-in hybrids will need to buy a RUC licence from April 1.
There will be a two-month transition period to allow time for people to get registered in the RUC system without being penalised for unpaid RUC.
What you need to know:
- Owners of light EVs will pay $76 per 1000km, in line with equivalent diesel-powered vehicles.
- Owners of plug-in hybrid vehicles will pay a reduced rate of $53 per 1000km so they’re not double taxed when paying Fuel Excise Duty. The partial rate of $53 per 1000km assumes on average, a plug-in hybrid will consume petrol at a rate of just under three litres per 100km.
- NZTA will inform EV and plug-in hybrid owners about the transition to RUCs and what it will mean for them.
- As part of this outreach, each EV and plug-in hybrid owner will receive a letter prior to April 1 explaining the RUC process. The first time an EV owner buys their RUC licence they need to give their odometer reading.
- Whenever a warrant of fitness is undertaken, a vehicle’s odometer will be reviewed. If the odometer exceeds the RUCs purchased by the vehicle’s owner, they will be invoiced for any difference.
