Petrol tax and RUC rises may drive more to EVs
Rises in petrol excise duty and light vehicle road user charges from July 1 may help steer more people towards EVs.
So says Drive Electric chairman Mark Gilbert, although he believes fuel prices are just part of the equation and that political will for switching vehicles to electric is needed more.
The rises are the last of a three-year sequence and will see petrol duty increase by four cents a litre from 66 cents to 70 cents, the money going to the National Land Transport Fund.
Also added to the duty is six cents for the ACC Motor Vehicle Account, 0.66c for the Local Authorities Fuel Tax and 0.6c for the Engine Fuels Monitoring Levy.
Auckland internal combustion engine (ICE) drivers pay an additional 10c Regional Fuel Tax, with GST charged on the overall fuel price.
Light vehicle RUCs are set to increase $4 per 100km from $72 to $76.
A RUC exemption for light EVs applies until June 30, 2021, while heavy EVs are exempt until December 31, 2025.
Gilbert says many people still need to grasp the benefits of an EV’s overall cost of ownership and that national policies are needed to help make the switch.
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What about the imminent road taxes that will have to be charged to all electric vehicles to maintain our roads — can’t come out of the general tax revenue — and what are the estimates of how much that will cost