New Zealand Offers Incentives to Buy EVs via Tax Increases on ICE Car Purchases

The New Zealand government has taken a proactive stance to reduce the number of fuel-powered vehicles on the country's roads by raising taxes on their purchase. At the same time, it provides incentives to buy EVs, making them a particularly attractive choice.

Starting July 1, New Zealand drivers who buy new electric vehicles will be able to receive incentives from taxpayers. The new Clean Car Programme 2022 provides incentives of $8,625 for the purchase of a new electric vehicle and $5,750 for a plug-in hybrid vehicle. Incentives cover purchases of EVs worth up to $80,000 that have a security rating of at least three stars. Discounts of up to $3,450 will be available to those buying used EVs and up to $2,300 for plug-in hybrids.

The most interesting feature of the new regulation is that in parallel with the increase in incentives for the purchase of EVs, the government also increases taxes on the purchase of gasoline cars. This actually means that the owners of such vehicles will cover the costs of purchasing for the owners of EVs. Under the government's plan announced on June 13, starting January 1, 2022, buyers of new gasoline vehicles will have to pay a tax of up to $5,875, while those who buy newly imported used cars will pay up to $2,875, according to nzherald.co.nz.

The fee will be based on the emissions of a specific vehicle. For example, the price of the new Toyota Hilux will be increased by $2,900, the Kia Sportage by $1,230, and the Nissan Navara by $830. The government expects from $125 million to $188 million to be raised in 2022 alone, which will fully cover the incentives provided for the purchase of electric vehicles and plug-in hybrid vehicles.

Source: Supplied

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