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HarmLessSolutions
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  #3276724 29-Aug-2024 13:44
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exador: What I meant to imply is that currently there is a disincentive to run a gas guzzler due to petrol taxes. With the tax removed, EVs will be even less attractive.

 

Currently petrol vehicles that use 9.5L/100km are paying FET equivalent to 7.6c/km, the same as diesels and EVs. If this is the sum total of the taxation changes it will benefit high consumption vehicles with cheaper petrol but the same RUC km rate as economical vehicles. In order to avoid the tax change becoming a windfall to 'gas guzzlers' some form of carbon tax needs to be added and it looks like the 12c per litre tax rise will be the first part of this.

 

It will be good too if the RUC purchasing system is upgraded to remove admin charges as these continue to most heavily penalise those who purchase RUCs in minimum quantities.





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KiwiSurfer
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  #3276726 29-Aug-2024 13:59
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HarmLessSolutions:

 

As suspected the rollout of RUCs for ICEVs is looking like happening from 2027, assuming the current government is still at the wheel beyond the next election. Wait and see I guess.

 

 

My understanding is that the previous government started work on this, and the current government simply just carried this work over. In the event we see a change back to the other side at the next election I would be surprised if this was scrapped by the incoming government given they started this work in the first place when they were in power.


smac
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  #3276727 29-Aug-2024 14:02
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No it'll happen regardless of who is at the big desk. Just the timing and eventual settings will vary. It's always been in the plan, just keeps getting put in the too hard basket. The Nat's and ACT are just finally the ones to say get on with it. 

 

The twist in the tail will be that I'm 99% sure the project will include a reassessment of the RUC rates, and I very much doubt they'll be going down.....

 

 




Batman
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  #3276780 29-Aug-2024 18:12
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2027 lol

 

some people can build an entire city by then

 

why so long i wonder


HarmLessSolutions
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  #3276783 29-Aug-2024 18:20
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Batman:

 

2027 lol

 

some people can build an entire city by then

 

why so long i wonder

 

 

Upsizing the infrastructure and admin required to cope with 3/4 of NZ's vehicle fleet mostly. Add to that designing and implementing a vehicle monitoring system to digitise and fraud-proof the distances charged for as well as enabling locational charging for the likes of congestion charges takes a bit of doing. 

 

Much of this was covered off by the AA guy in the RNZ interview I linked to earlier.





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mattwnz
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  #3276784 29-Aug-2024 18:35
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exador: What I meant to imply is that currently there is a disincentive to run a gas guzzler due to petrol taxes. With the tax removed, EVs will be even less attractive.


Not unless they introduce new fossil fuel taxes to replace the petrol taxes on a per litre rate, which I suspect they will. Electricity cost variations are massive in NZ and the cost increases large, so there isn't much incentive now to buy an EV over a hybrid after Nationals changes.

 
 
 

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HarmLessSolutions
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  #3276785 29-Aug-2024 18:43
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mattwnz: 
Not unless they introduce new fossil fuel taxes to replace the petrol taxes on a per litre rate, which I suspect they will. Electricity cost variations are massive in NZ and the cost increases large, so there isn't much incentive now to buy an EV over a hybrid after Nationals changes.

 

Easily solved. Install home solar and lock your low electricity prices in for at least 30 years.

 

https://www.rewiring.nz/tomorrow





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Scott3

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  #3400303 6-Aug-2025 12:02
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This is back in the media.

Personally thought it was all a bait and switch, but it seems the wheels are turning. Happy to be proven wrong.

https://www.stuff.co.nz/politics/360782053/petrol-tax-getting-scrapped-road-user-charges-expand-all-vehicles-2027

 

Note it is going to be a slow process. The upgraded RUC system es expected to go live by 2027. But no date has yet been set for the full switch to electronic RUC for all light vehicles.


djtOtago
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  #3400304 6-Aug-2025 12:04
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I don't see it happening before 2030.


SaltyNZ
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  #3400305 6-Aug-2025 12:05
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djtOtago:

 

I don't see it happening before 2030.

 

 

 

 

Yeah the hand wavy dates they have given mean "never". Not that Labour was any better.





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HarmLessSolutions
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  #3400311 6-Aug-2025 12:35
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djtOtago:

 

I don't see it happening before 2030.

 

The longer they leave it the fewer ICE vehicles to deal with I guess.





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richms
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  #3400317 6-Aug-2025 12:52
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As usual the reddit crowd are all moaning about this because of the private sector being able to sell RUCs and oh no the poor people.





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davidcole
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  #3400323 6-Aug-2025 13:17
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richms:

 

As usual the reddit crowd are all moaning about this because of the private sector being able to sell RUCs and oh no the poor people.

 

 

they're also moaning (and I agree), prices will drop by 50 -70 cpl after tax removed....but then watch it climb back up and then we have RUC on top





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mattwnz
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  #3400324 6-Aug-2025 13:21
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As they said it was going to be based on weight,  I wonder if EVs may end up paying more due to them being heavier.  
But they do need to get people moving away from these fuel hungry old vehicles and this move doesn’t help with that. Whereas the status quo does help


wellygary
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  #3400327 6-Aug-2025 13:31
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richms:

 

As usual the reddit crowd are all moaning about this because of the private sector being able to sell RUCs and oh no the poor people.

 

 

The "new" system, which I guess will apply to the existing RUC holders to begin with, will pretty much do away with "selling RUCs" 

 

The ability to post pay and monthly billing, will basically see it become like a HOP card for your car, most people will just set up an AP to pay the amount each month/quarter


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