Labour’s Car Tax is quickly unravelling with consumers being required to pay tax for cars which should be receiving rebates under the Clean Car Discount Scheme, National’s Transport spokesperson Simeon Brown says.

“It has barely been a week since the Car Tax came into effect on 1 April, and there is already widespread confusion in the sector from dealerships and buyers about how the tax applies to these cars.

“The purchasers of some hybrids who should have been getting a rebate of $3450 were required to pay a fee of $3000 to register the vehicle by NZTA. Other vehicles were showing a fee of $2875 when they deserve a rebate of $1600 or $2500.

“An example raised with me was of the purchaser of a Toyota Aqua, which were meant to receive a rebate of $1594, but instead were required to pay $1207.

“This problem has big implications for Kiwis, as the rebate or tax applies once a car is first registered. Kiwis are buying cars believing in good faith they will get a rebate, but are instead they are being slapped with a tax.

“Worse still is that once the car is registered there is no redress or refund available to these consumers.

“The Government was told by the vehicle industry that more time was needed to allow for these issues to be resolved prior to implementation. That advice was ignored, and now New Zealanders are paying the price.

“The Government’s incompetence is costing dealers their reputation as they are being accused of misrepresenting the price of vehicles.

“The Government needs to fix this issue quickly before more Kiwis are ripped off by their Car Tax.”