All road users have been subsidising EV drivers who were paying neither fuel tax nor road user charges as every other vehicle owner must. That subsidy will soon stop:
The coalition Government is confirming that the exemption from road user charges (RUC) for owners of light electric vehicles (EVs) and plug-in hybrids will end from 1 April, Transport Minister Simeon Brown says.
“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. 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.
“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.” . . .
It might dissuade some people from buying electric vehicles but contrary to the rhetoric from those worried about environmental damage, the Taxpayers’ Union points out that this will have no impact on transport emissions which are governed under the emissions trading scheme.
Removing the subsidy is user pays and it’s fair. Drivers of EVs should pay as other road users do for the maintenance and upgrade of roads.
Ele Ludemann is a North Otago farmer and journalist, who blogs HERE - where this article was sourced.
2 comments:
Also conveniently overlooked is the weight of EV vehicles. Weight has an impact on road surface wear and tear and EV's compared to their ICE counterparts are significantly heavier. To truly be fair, the RUC on an EV should be loaded slightly more accordingly, but I can appreciate that we don't distinguish between cars more generally.
EV owners have certainly had it good and it's well past time they should contribute to the roads they use.
User pays is fair just like GST is based on consumption.
The problem is when the user pays and pays and pays.
GST on top of tax as with petrol prices.
The unfavourable subsidising the favoured as with EVs and discussed above.
And card surcharges - credit, debit, EFTPOS and any other excuse. Over and above the annual card fee to the issuing bank.
In some instances stores are cash free ie card only so one has no choice. Yes, in theory you can walk away from that store but as we all know, in reality, that is not always possible.
Cards are automated so card use saves the cost of producing cash, cash transactions including between store and bank, cash security costs, installation and operating costs of ATMs ( except where they too charge a fee) the cost of staff and services ( eg security) formerly associated with all these activities.
Yet despite so called efficiencies the card user is charged through the nose.
The Luddite in me says - bring back cash. Or will that just induce a cash transaction fee?
Please explain.
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