Global Daily Tax News, New Zealand To End Tax Perks For Electric Vehicles, (Jan 22, 2024)

The New Zealand Government has confirmed that road levies will be returned for light electric vehicles and plug-in hybrid vehicles from March 31, 2024.

EVs have been exempt from New Zealand's road user charges (RUC) since 2009. The exemption was to be retained until EVs reached about two percent of New Zealand's light vehicle fleet - a target that has now been reached.

The Government has decided to create a reduced RUC rate for plug-in hybrid vehicles, noting that these vehicle owners already contribute towards New Zealand's coffers through fuel excise duty when refuelling.

From April 1, 2024, owners of light EVs and plug-in hybrid vehicles under 3.5 tonnes will need to buy a RUC licence and display it on their windscreen.