infonews.co.nz
INDEX
TRANSPORT

Electric Vehicle Exemption from Road User Charges to End

Wednesday 17 January 2024, 9:10AM

By Expert Briefing

221 views

Owners of light electric vehicles (EVs) and plug-in hybrids will be required to pay road user charges (RUC) in New Zealand from 1 April 2024.

Currently, EVs are exempt from RUC, whereas plug-in hybrids only pay fuel excise duty on petrol usage.

The government has decided to end this exemption due to the increasing popularity of EVs and plug-in hybrids, and to ensure that all road users contribute to the maintenance of roads.

  • Owners of light EVs will pay $76 per 1000 kilometres, in line with equivalent diesel-powered vehicles.
  • Owners of plug-in hybrid vehicles will pay a reduced rate of $53 per 1000 kilometres so that they are not double taxed when paying Fuel Excise Duty. The partial rate of $53 per 1,000 kilometres assumes that on average, a plug-in hybrid will consume petrol at a rate of just under 3 litres per 100 kilometres. 
  • 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.