Simeon Brown confirms EVs, hybrids to pay road user charges

January 16, 2024
Electric vehicles being charged. Stock image.

Transport Minister Simeon Brown has confirmed the Government is ending the road user charges exemption for light electric vehicles and plug-in hybrids.

Brown said it was the first step in "delivering" on the National-ACT coalition agreement to bring all vehicles into the RUC system.

The exemption will end from April 1.

"This transition to RUC is about fairness and equity. It will ensure that all road users are contributing the upkeep and maintenance of our roads, irrespective of the type of vehicle they choose to drive," Brown said.

"Plug-in hybrids are powered by electricity and petrol and have had to pay petrol tax, but not to the same level as petrol equivalent vehicles. To ensure that plug-in hybrids avoid paying twice through both fuel excise duty and RUCs, these vehicles will pay a reduced rate RUC."

The previous National government had exempted EVs from paying road user charges.

Owners of light EVs will pay $76 per 1000km, in line with equivalent diesel-powered vehicles.

Owners of plug-in hybrid vehicles will pay a reduced rate of $53 per 1000km so they are not double taxed after paying fuel excise duty.

The Motor Trade Association welcomed the Government’s announcement of RUCs applying to EVs and plug-in hybrids from April.

"We had advocated for this policy and are pleased that the Government has listened," MTA Chief Executive Lee Marshall said.

"There’s no doubt that the exemption from RUC for EVs has helped increase the number on our roads.

"That’s been welcome, and it’s now time that with the increase in the size of our electrified fleet past the 2% threshold, drivers of EVs help pay for the upkeep of the roads they travel on."

Lee said weather events of the last 12 months have accelerated the deterioration of roads.

"Cyclones and storms are only going to occur more frequently in the future," Lee said. "Roads are still the way most New Zealanders travel, for work or pleasure, so it’s imperative that we have roads that are strong, resilient, and easily repaired."

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