National confirms no support for EV RUC extension

Light EVs are due to lose their exemption from road user charges (RUC) on March 31 next year, and it appears the National Party may not delay that if it becomes the Government from October 2023.

While the March 31, 2024, deadline is for light EVs or those under 3500kg, heavy EVs will be exempt from RUC to December 31, 2025.

Light EV owners may be charged about $76 per 1000km.

The average motorist drives 12,000km annually, according to the New Zealand Automobile Association, equating to about $912 in RUC for owners of light EVs.

The light EV RUC exemption was introduced in 2016 by then transport minister Simon Bridges to help encourage EV uptake, and it had been extended by former transport minister Michael Wood.

New transport minister David Parker reportedly confirms no further EV RUC changes are being considered while National leader Christopher Luxon has said EV owners should pay RUC, meaning the exemption due dates are expected to remain.

National transport spokesman Simeon Brown has confirmed that, telling media the EV RUC exemption was meant to apply only until EVs got to 2% of New Zealand’s fleet (now about 1.8%).

He expects further EV policy to be revealed by National nearer the October 14 election.

Plug-in hybrids (PHEVs) may be subject to RUC as well with Wood previously suggesting PHEVs sbouldn’t be double charged (petrol tax and RUC), while there may be issues around when PHEVs use electric or petrol.

The AA reportedly supports the Government reviewing the EV RUC exemption.

Green Party transport spokeswoman Julie Anne Genter says it’s still too early to ditch the EV RUC exemption as progress continues in switching New Zealand’s fleet to low- and zero-emission vehicles.

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