New Zealand Businesses Need tax Break for Electric Cars
November 5, 2015 Taxation in New Zealand
WELLINGTON – Providing tax breaks to New Zealand businesses buying electric vehicles will help all consumers transition to green-technology vehicles.
On November 5th the Green party of New Zealand launched a new Bill to provide tax breaks to businesses which purchase electric vehicles for employees.
Under the proposed new rules the fringe benefit tax applied to the purchase by businesses of vehicles for staff member will no longer be levied, if the vehicle is a rechargeable electric vehicle.
It is believed that the rule change would result in a 36 percent reduction in the upfront cost of purchasing an electric vehicle for an employee, with further savings over the lifetime of the car.
According to the Green Party, reducing the tax burden on new electric vehicles will help bring such cars to the general public, as business purchase a significant portion of New Zealand’s new vehicle fleet, but often sell these cars to private consumers with 5 years.
It was also noted that New Zealand has good conditions for electric vehicles, as the country generates approximately three quarters of its electricity from clean and renewable local sources.
While explaining the benefit of converting a greater number of cars to electric vehicles, the Green Party transport spokesperson Julie Anne Genter said “…by accelerating the transition to electric cars, we’ll save people money and help businesses be part of the solution to climate pollution.”
Photo By: The NRMA