Green’s propose tax breaks for EVs

The Green Party has proposed companies get tax breaks for providing their staff with electric vehicles.

Transport spokeswoman Julie Anne Genter, and Green Party co-leader James Shaw, are to introduce a private members bill that will exempt electric vehicles from Fringe Benefit Tax.

“Tax breaks for businesses who choose electric cars provide a major cash incentive to switch to a clean, efficient fleet, cutting the upfront cost of an electric car by up to 36%, with further savings over the life of the car,” Genter says.

“We’ll also give tax breaks to companies who provide their staff with public transport passes instead of free carparks.

“By dramatically increasing the number of new electric cars in New Zealand, we’ll pave the way for a large second-hand market for electric cars, putting clean cars within almost everyone’s reach in just a few years,” Genter explains.

“We’re targeting businesses because businesses buy most of the new cars in New Zealand and then sell them second-hand to families and individuals after 3-5 years.”

“In Government, we’ll take the lead and transition the Government’s own vehicle fleet to electric cars.

Fringe benefit tax is a tax on non-cash benefits that employees receive as a part of their salary package, such as cars or health insurance. Cars are taxed at either 20 percent of their cost price or 36 percent of their book (depreciated) value.

Transport minister Simon Bridges has been a proponent of electric vehicle technology, but has been criticised to his hands-off, market-led approach to the issue.