Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Dutch drop taxes on climate friendly cars

7 July 2006

Dutch drop taxes on climate friendly cars: New Zealand should follow

The Netherlands is the latest government to drop taxes on climate friendly cars, in a move business leaders here say New Zealand should follow. Dutch car registration tax – payable on purchasing a new car – will be strongly differentiated according to vehicles' environmental performance. The greenest hybrid cars will secure a 6,000 euro ($12,000) discount compared with standard rates.

The last climate friendly cars will pay 540 euros ($1080) more tax. Cars will be classified into seven categories based on their fuel consumption, CO2 emissions and an efficiency indicator relative to other cars of a similar size. The maximum discounts for conventionally fuelled vehicles will be 1,000 euros.

The New Zealand Business Council for Sustainable Development – whose 51 member companies annual sales equate to 28% of the gross domestic product – says New Zealand should join the growing parade of states and businesses paying incentives to help quickly achieve fuel efficient, low emission vehicle fleets.

The Government is now considering a Business Council policy proposal – supported by six out of 10 New Zealanders in nationwide UMR polling – to pay climate friendly cars buyers cash grants of up to $3000. Incentives will also apply to imported cars. Business Council Chief Executive Peter Neilson says 86,000 climate friendly cars will enter the nation's vehicle fleet each year under the policy.

Over their fleet life buyers will spend $727 million less on petrol, air quality improved – and health bills cut. The British Government offers car tax cuts for climate friendly cars, along with some states in the United States, like California.

Federal incentives are also being advocated by the Bush administration in the United States, and companies, like Google and Bank of America Corp are offering staff rebates of up to US$5000 ($10,000) to buy hybrids. Hybrids are also attracting 10% insurance rebates, and some cities are offering staff parking concessions if they use climate friendly cars.

"Higher petrol prices are boosting sales of smaller vehicles here but incentives will drive a large scale and very quick switch to fuel efficient, low emission cars – and quickly improve air quality. It will help tackle climate change in a very practical way which Kiwis will overwhelmingly support," Mr Neilson says.

ENDS

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Media Mega Merger: StuffMe Hearing Argues Over Moveable Feast

New Zealand's two largest news publishers are appealing against the Commerce Commission's rejection of the proposal to merge their operations. More>>

Elsewhere:


Approval: Northern Corridor Decision Released

The approval gives the green light to construction of the last link of Auckland’s Western Ring Route, providing an alternative route from South Auckland to the North Shore. More>>

ALSO:


Crown Accounts: $4.1 Billion Surplus

The New Zealand Government has achieved its third fiscal surplus in a row with the Crown accounts for the year ended 30 June 2017 showing an OBEGAL surplus of $4.1 billion, $2.2 billion stronger than last year, Finance Minister Steven Joyce says. More>>

ALSO:

Mycoplasma Bovis: One New Property Tests Positive

The newly identified property... was already under a Restricted Place notice under the Biosecurity Act. More>>

Accounting Scandal: Suspension Of Fuji Xerox From All-Of-Government Contract

General Manager of New Zealand Government Procurement John Ivil says, “FXNZ has been formally suspended from the Print Technology and Associated Services (PTAS) contract and terminated from the Office Supplies contract.” More>>