Electric car Road User Charges exemption extended to 2024

The government has announced that the exemption that electric vehicles have enjoyed from paying light vehicle road user charges (RUCs) is going to be extended to 2024.

An extension to the exemption had been teased prior as part of the government’s ongoing push to try and get more Kiwis into electric vehicles. It had been due to lapse at the end of the year. The move should see EV owners save around $800 per year.

“Our government is continuing to take action to tackle transport emissions to meet our 2050 carbon neutral target – part of this is helping Kiwis into cleaner cars,” says Transport Minister Michael Wood.

“New Zealanders can save about $800 per year with this exemption, giving them another reason to make the switch to an electric vehicle. Given charging your electric vehicle at home off-peak is like buying petrol at around 40c/litre, there are huge savings to be made.

“The Clean Car Discount is also helping with the upfront cost of getting an electric vehicle, with Kiwis getting up to $8625 back in the hand.

“While the Clean Car Discount is providing support to those purchasing zero emission cars now, the exemption continues to provide support for those who bought one before the discount was announced.”

The announcement reflects what the National Party opposition’s previous calls for the exemption to be extended until at least 2023.

“Drive Electric welcomes the extension of the exemption on Road User Charges for electric vehicles until 31 March 2024. This policy has been in place since the previous Government and it makes good sense to extend it to support the uptake of EVs,” added Drive Electric chair Mark Gilbert.

“Drive Electric has advocated for a short-term extension. However, as EVs inevitably become a larger share of our national fleet, we will need to consider how we fund future roads and maintenance. Therefore, we support the extension being temporary and can be re-assessed as necessary.”