The government is putting into action a rebate scheme that will see those buying electric vehicles (EVs) enjoy discounts of up to $8,625. This initiative is to come into effect from July and apply to cars worth up to $80,000. This qualifies at least one Tesla model and other popular EV vehicles like the Nissan Leaf.
It will apply not just to newly imported EVs, but also used EVs, plug-in hybrids, and ordinary internal combustion vehicles with low emissions. The amount of discount will depend on the emissions profile of the particular vehicle.
This scheme is to be funded by fees taxes on polluting vehicles that will be imported as new or used. The fees will also depend on the level of emissions of the vehicle, with a maximum fee of $5,195 on new cars and $2,875 on used cars. The fees collected will then go towards the rebate scheme for EVs, with the intention being to see more people encouraged to go green.
This proposal has however not been received positively from several quarters. The proposed policy was first raised by the then Transport Minister Julie Anne Genter in 2019. This plan proved unpopular and was ultimately blocked by NZ First. The scheme has however now been revived by current Transport Minister, Michael Wood, and his Climate Change counterpart, James Shaw, this week. It has been dubbed the Clean Car Discount.
National and ACT have voiced opposition to the scheme, saying it will punish farmers, tradespeople, low-income earners, and large families who are the primary market for large family cars, vans, and utes. National’s Michael Woodhouse said that low emission vehicles would either be too expensive or unsuitable to the lifestyle of such people. He added that those that would benefit would be the high-income earners who would not have to pay as much for a Tesla. He said the party felt there were better ways to encourage uptake of EVs such as exempting them from fringe benefit taxes, extending road user charge exemptions, and providing them access to bus lanes and free parking.
The Taxpayer’s Union has also called for a stop to the tax scheme, terming it unfair, uneconomic, and unenvironmental. They have set up a petition, claiming that larger families and low-income earners will disproportionately be affected.
National leader, Judith Collins, has also asked the Labour government to reopen public consultation on the car tax so the people can have a say. She said the way the government had gone about imposing this tax was dishonest and undemocratic. She questioned the speed to have rebate applications open as early as July 1st yet the proposal had already been rejected in 2019.