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January 2024
Road User Charges

Road User Charges are coming to EVs and PHEVs

The date is right for it but this isn’t an April Fool’s joke – from April 1, electric vehicle (EV) owners will have to pay road user charges (RUCs).

We had known the change was coming for a while, as the Waka Kotahi website states that light electric vehicles (gross laden weight under 3500kg) are only exempt up until 31 March 2024. Heavy electric vehicles (gross laden weight more than 3500kg) are exempt from RUC until 31 December 2025.

“Petrol tax and distance-based RUC are paid by road users to contribute to the costs of maintaining our roads, but EVs and plug-in hybrids have been exempted from RUC,” said Transport Minister, Simeon Brown. ”Transitioning EVs and plug-in hybrids to RUC is the first step in delivering on the National-ACT coalition commitment to bring all vehicles into the RUC system.”

Owners of light EVs are set to pay $76 per 1000km, the same as equivalent diesel vehicles. Meanwhile, those driving plug-in hybrids (PHEVs) will pay $53 per 1000km. This partial rate of $53 per 1,000 kilometres assumes that on average, a plug-in hybrid will consume petrol at a rate of just under 3 litres per 100 kilometres.

“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.

“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 exempted EVs from paying RUC to encourage their uptake. This exemption was always intended to end when EVs hit around two per cent of the light vehicle fleet and we’re now at that point.

"With the increasing uptake of EVs and plug-in hybrids being brought into the RUC system, this means that these vehicles will now be contributing towards the maintenance and upkeep of our roading system like all other road users and will support the Government’s priority of building and maintaining our roading network.” 

Motor Trade Association chief executive, Lee Marshall, said the MTA welcomed the change. “We had advocated for this policy and are pleased that the Government has listened.

“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.”

Waka Kotahi will reach out to EV and PHEV owners before April 1 to outline the RUC process. The first time an EV owner buys their RUC licence they need to give their odometer reading. Whenever a warrant of fitness is undertaken, a vehicle’s odometer will be reviewed. If the odometer exceeds the RUCs purchased by the vehicle’s owner, they will be invoiced for any difference.

Key points

  • Road user charges will apply to electric vehicles and plug-in hybrid vehicles from April 1 2024
  • EVs will pay $76 per 1000km
  • PHEVs will pay $53 per 1000km

Article courtesy of Stuff.co.nz

https://www.stuff.co.nz/motoring/133566430/road-user-charges-set-to-apply-to-evs

 

 

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