The Government’s car tax comes into force today, piling on yet another cost for Kiwis facing a cost of living crisis, National’s Transport spokesperson Simeon Brown says.

“Hardworking Kiwis will be hoping that this is just an April Fool’s joke, but sadly they will still have to live with Labour’s new car tax after today.        

“The so-called ‘Clean Car Discount’ gives a rebate for expensive electric vehicles while imposing fees of thousands of dollars on many other vehicles. For example, buyers of a Toyota Hilux* will face a $5175 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.

“LDV will have an electric alternative, the EV-T60, coming from China later this year. But it is two-wheel drive and can only haul a max of 1,000 kgs for 162km. This is not enough to meet farmers’ needs, who need strength and reliability.

“While the Government gives with one hand, by temporarily reducing fuel taxes, it takes with the other by 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.

Note: *The following make, model and engine size of the Toyota Hilux is: WM SC/CC (2020-22) 2694cc