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Local MPs react to government’s clean car package

The Central App

16 June 2021, 6:04 PM

Local MPs react to government’s clean car packageIs a tax on utes unfair?

Local MPs say the government’s new clean car package does too much to punish others in order to subsidise the cost of electric vehicles. 


New rebates for electric and plug-in hybrid vehicles will start next month with up to $8,625 for new vehicles and $3,450 for used ones, but buyers of a range of utes will be slapped with a $3,000 or so fee.



National’s Waitaki MP Jacqui Dean said the scheme is “just not right”.


‘’National supports incentivising the uptake of EVs but not by taxing farmers, tradies, larger families and those in remote and rural communities who aren’t in a position to buy EVs.


‘’I would like to see more positive initiatives such as exempting EVs from fringe benefit tax, extending road user charge exemptions and allowing EVs to use bus lanes.’’


Meanwhile, National’s Southland MP Joseph Mooney said he supports EVs but doesn’t believe it needs to punish others - particularly farmers who do not have the option of electric utes - with a tax.


“The world simply isn’t producing enough EVs and it is wrong for the government to penalise tradies and farmers who don’t have another option - the electric utes they need to do their jobs simply aren’t available, so why should they be penalised with a new tax?”


The Motor Trade Association (MTA) welcomed the clean car discount package announced.


“We do welcome today’s news, as we have called for support on the demand side for a long time,” MTA advocacy and strategy manager Greig Epps said.


Transport minister Michael Wood said transport emissions are the fastest growing source of greenhouse gas emissions in New Zealand, and the country is lagging behind others on the uptake of EVs, with monthly registrations of EVs around half the global average.


“A discount on electric, hybrid and low emission vehicles funded from a fee on higher emitting ones is the best policy to increase low emissions vehicle uptake in New Zealand,” he said.


“It’s a common policy overseas, a recommendation of both the Climate Commission and the Productivity Commission, and is supported by the likes of the Motor Industry Association – it’s time to get moving with it.”


PHOTO: Supplied