Sunday, July 3, 2022

Race to beat ute tax

Neal Wallace
Attempts to beat the ute tax, which came into force on April 1, have been hampered by supply issues delays.

The Clean Vehicle Act imposes a levy on high carbon-emitting vehicles, with the money used to rebate or subsidise the purchase cost of new electric vehicles.

Attempts to beat the ute tax, which comes into force on April 1, have been hampered by supply issues delays.

Vehicle retailers reported exceptional interest as potential purchasers try to beat the levy and replace their utilities, but supply issues have caused delivery delays of up to six months for some models.

The Clean Vehicle Act imposes a levy on high carbon-emitting vehicles, with the money used to rebate or subsidise the purchase cost of new electric vehicles (EVs).

Implementation has already been delayed from January 1 due to covid.

Asked if the Ministry of Transport would further delay implementing the levy given the supply issues, a spokesperson said there have been discussions with the Vehicle Importers Association, but an extension is not being considered.

A Ford spokesperson said the levy, part of the on-road costs, adds between $1090 to $4660 depending on the model and other specifications.

Motor Industry Association data reveals commercial vehicle sales in February were 4971 compared to 3776 a year earlier and, for the year-to-date, 9421 compared to 7950 a year ago.

The Climate Change Commission reports that last year 13,247 EVs were registered in New Zealand, and in January and February this year another 2473 were added.

The spokesperson said for many months its dealers experienced an upsurge in queries, with people and businesses considering purchases ahead of the new tax.

Supply with availability issues have been a problem and are dependent on specific vehicles and specifications.

“With some models, dealers have access to stock for their customers, in others cases, they could very well be sold out,” the Ford spokesperson said.

Toyota NZ new vehicle manager Steve Prangnell said the level of interest in Hilux models since late last year has been unabated.

He said the Clean Car fee is a Government initiative and is levied as part of the on-road costs.

“It’s not a part of the vehicle cost and none of Toyota’s vehicles have had a price increase or decrease as a result of the law change from the Clean Car Programme,” Pragnell said.

Total
0
Shares
More articles on this topic