EV RUC timely and fair – MTA

Extending road user charges (RUC) levels the playing field and will help New Zealand roads get more much-needed maintenance.

That’s the response from the Motor Trade Association (MTA) to the Government’s announcement that RUC will apply to EVs and plug-in hybrids (PHEVs) from April 1, 2024.

RUC will apply to EVs (including PHEVs at a reduced rate of $53 per 1000km) and it will cost EV owners nearly $1000 annually with them charged $76 per 1000km – similar to other non-petrol light vehicles such as diesel cars, plus administration fees of $12.44 (online) or $13.71 (over the counter) when pre-paying for a block of 1000km or more.

“We had advocated for this policy and are pleased that the Government has listened,” says MTA chief executive Lee Marshall.

“There’s no doubt that the exemption from RUC for EVs has helped increase the number on our roads.

“That’s been welcome, and it’s now time that with the increase in the size of our electrified fleet past the 2% threshold, drivers of EVs help pay for the upkeep of the roads they travel on.”

Marshall says the challenge is to ensure that the EV RUC proceeds go where it’s needed – on roads.

“The founding principle of the National Land Transport Fund is that it focuses solely on roads,” he says.

“In 2020 the law was changed to allow these funds to pay for rail. While rail has an important role to play in our transport network, the principle that road users only pay for roading projects is the correct one, and we trust the Government to follow through on that.”

Marshall says weather events in the last year have accelerated deterioration of Kiwi roads.

“The reality is that cyclones and storms are only going to occur more frequently in the future,” he says.

“Roads are still the way most New Zealanders travel, for work or pleasure, so it’s imperative that we have roads that are strong, resilient, and easily repaired.”

From April 1, 2024, owners of light EVS (gross laden weight 3500kg or less) will need to buy a RUC licence and display it on their windscreen, says Waka Kotahi NZ Transport Agency.

“This includes plug-in hybrid electric vehicles (PHEVs). It doesn’t usually include hybrid vehicles that can’t plug in to recharge.”

Heavy EVs with a gross laden weight of more than 3500kg are exempt from RUC until December 31, 2025.

Marshall says the MTA looks forward to more detail for motorists being released by Government.

“We’re ready to help communicate and facilitate the changes and advise for steps on a smooth introduction.”