Feebate ‘increases cost of motoring’

The National Party says the clean car discount scheme rolled out at the start of this month leaves Kiwis facing yet another expense as they contend with a cost-of-living crisis.

Simeon Brown, the party’s transport spokesman, describes the feebate system, which offers discounts or charges fees on vehicles being registered in New Zealand for the first time based on their emissions, as a “car tax”

“The so-called clean car discount gives a rebate for expensive electric vehicles while imposing fees of thousands of dollars on many other vehicles,” he says. 

“For example, buyers of a Toyota Hilux will face a $5,175 tax when they first register the vehicle. This will have a negative impact on our farmers and tradies who need utes to do their jobs and contribute to our economic recovery.

“The government is penalising farmers and tradies for their choice of vehicle despite there being no viable electric ute available. Even Toyota had to correct the Prime Minister last year that it has no plans to bring an electric ute to New Zealand within the next two years.”

Brown, pictured, adds LDV plans to have an electric ute, the EV-T60, available in the market this year but “it is two-wheel drive and can only haul a maximum of 1,000kg for 162km. This is not enough to meet farmers’ needs, who need strength and reliability.”

He says while the government is temporarily reducing fuel taxes, at the same time it is imposing the Auckland regional fuel tax, a car tax, and is now proposing a biofuels mandate, which will further increase the cost of fuel.

“All of these policies drive up the cost of living for motorists struggling to get by under rapidly rising inflation and fuel prices.”