Climate Change Minister James Shaw’s proposal to tax older vehicles to subsidise electric ones is, in practice, an attack on the poor, says the New Zealand Taxpayers’ Union.

“This is an enormously regressive policy. The New Zealanders currently shelling out for older, less efficient vehicles are those least able to afford an extra levy.”

“Electric vehicles are a luxury of the rich and, even with a subsidy, will remain so for the foreseeable future.”

“Already, wealthy electric vehicle owners are exempted from road user charges. Taxing poor families’ Toyota Estimas to subsidise Teslas is morally objectionable.”

“And this proposal is salt in the wound for commuters who are already expecting fuel tax hikes and new regional fuel taxes, which again disproportionately hit the poor.”

“The Government needs to demonstrate that its lofty zero-carbon target is worth the costs given vis-à-vis climate change adaption.”

ENDS

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