New Zealand Extends Tax Break on Electric Cars
September 15, 2016 Taxation in New Zealand
WELLINGTON – The New Zealand government is turning to tax breaks to encourage consumers to buy electric vehicles.
Late last week the Minister of Transport of New Zealand Simon Bridges announced that the government has extended the exemption from Road User Charges (RUC) available to drivers of electric vehicles.
Currently, any vehicle on the road in New Zealand that is not powered by petrol is liable to pay a RUC.
However, electric cars currently enjoy an exemption from the charge.
The exemption was set to expire in 2020, but has been extended to 2021, in order to further encourage the use of the cleaner technology.
It is estimated that the RUC could save an average driver as much as NZD 3 000 over the course of 5 years.
The government hopes to see at least 64 000 electric cars on the road in New Zealand by the year 2021.
The tax exemption is one of 14 measures currently being taken by the government to encourage the use of electric cars, among them being a new fund opened this week by the government to pay for some of the costs for any new public project which actively promotes or publicizes electric cars.
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