Tax Break on Electric Cars Extended in New Zealand
May 6, 2016 Taxation in New Zealand
WELLINGTON – Drivers of electric cars in New Zealand will enjoy tax breaks on the environmental friendly cars, until at least 2 percent of all cars on the road are fully electric.
On May 5th the government of New Zealand announced a raft of new measures aimed at increasing the uptake of electric vehicles used in the country.
As part of its incentive package, the government announced that it will extend the Road User Charge (RUC) exemptions on light and heavy electric vehicles until they make up approximately 2 percent of the national vehicle fleet.
Previously the exemptions were slated to end in 2020, however, the uptake of electric cars has been slower than was projected at the time the exemptions were initially enacted.
it has been estimate that an average driver using an all-electric car in New Zealand saves approximately NZD 700 per year under the current RUC exemption scheme.
Further the tax depreciation rules on electric vehicles and the fringe benefit tax rules regarding the provision of electric vehicles for staff will also be revised to ensure that businesses switching to an electric fleet are not disadvantaged.
Non-tax measures will also be pursued on the push to electric cars, with new funding being given for promotion of electric vehicles and for the development of a nationwide charging infrastructure, and new regulations to allow electric cars to use bus lanes.
The government hopes to see the number of electric cars on the road in New Zealand double every year, reaching approximately 64 000 by the end of 2021.
Photo By: internets_dairy