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Labour confirms it is discussing new taxes on cars

Labour confirms it is discussing new taxes on cars

National Party Finance spokesman Bill English has welcomed Labour’s belated admission that it is indeed considering a new tax that could push up the price of a family car by thousands of dollars.

“The Associate Transport Minister has tonight confirmed the new emissions tax on cars is being considered. It will mean that if your car emits more CO2 than a Suzuki Swift, the tax will apply.”

Mr English says while the emissions tax will apply to new and imported used cars, it is likely to force up the price of second-hand vehicles and, longer-term, possibly the age of the Kiwi car fleet as well.

The proposed new levy will apply to all new and used imported cars if they do not meet fuel economy standards. The proposed levy is set out in the discussion document ‘Improving the fuel economy of vehicles entering the New Zealand fleet’.

“The family sedan or wagon is likely to go up in price by more than $7,000 by 2015.”

The levy will range from $4,000 for a van in 2009 to $10,000 for a Holden Commodore next year. Labour’s plan is that, starting in 2009, the Government will begin charging importers $150 per gram of CO2 emitted per kilometre travelled above the standard of 214g CO2/km.

“The national standard will be lowered to 170g CO2/km by 2015. That’s the fuel economy of a Suzuki Swift.”


The cost of a Toyota Camry (229g CO2/km) will rise $2,250 in 2009, climbing to $8,850 in 2015.

The cost of a Honda Accord (220g CO2/km) will rise $900 in 2009, climbing to $7,500 in 2015.

The cost of a Mazda6 (218g CO2/km) will rise $600 in 2009, climbing to $7,200 in 2015.

The cost of a Toyota Hi-ace (245g CO2/km) will rise $4,650 in 2009, climbing to $11,250 in 2015.

The cost of a Holden Commodore (282gCO2/km) will rise $10,200 in 2009, climbing to $16,800 in 2015.

As older cars do not have the required fuel economy information, the Government will assess these cars as emitting 400gCO2/km at a cost of some $27,900 by 2009.


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