Scoop has an Ethical Paywall
Work smarter with a Pro licence Learn More
Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

Taxing Tradies To Subsidise Teslas

“Labour is breaking its promise to not introduce new taxes by slapping new taxes on tradies, farmers and large families,” says ACT Leader David Seymour.

“The ‘feebate’ scheme ignores the fact that vehicles are already taxed and subsidised through the Emissions Trading Scheme (ETS).

“In September 2020, Grant Robertson said ‘we will not be implementing any new taxes this term’, aside from hiking the top income tax rate.

“Let’s be clear – this is a new tax. A tradie or a farmer purchasing a Toyota Hilux will be slapped with a new tax of $2,900. A family buying a Kia Sportage will be taxed $1230.

“The combination of feebate plus ETS charges means a double tax for Kiwis who need larger, less fuel-efficient vehicles.

“Feebate ignores the fact that we already tax and subsidise cars based on their fuel efficiency.

“Motorists pay 77.3c a litre in petrol taxes, plus an ETS tax of 9c a litre. In Auckland, there’s a further 10c regional fuel tax. GST is charged on top, taking total tax to around 99.3c a litre (and 110.8c in Auckland). That means EV owners get a subsidy of at least 99.3c a litre in taxes.

“Over the lifetime of a vehicle, the subsidy for EVs is already large. The driver of a Toyota Corolla that travels 200,000km at 8L/100km will pay approximately $15,888 of fuel tax over its lifetime (99.3c/L x 8L/100km x 200,000km).

“Worst of all, someone shifting to an EV will not actually reduce total emissions. Because they will not use carbon credits under the ETS, they actually free up credits for someone else to use. This is because the total number of credits available is capped under the ETS.

Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

“The social justice wing of the Green Party should ask why the party is prepared to tax people who drive cheap, reliable cars, just so the well-off environmental wing can buy a Tesla.

“The Government might ask itself why people aren’t choosing EVs in spite of massive subsidies. Motorists might be trying to say something about their efficiency as a way of reducing emissions.

“The Government needs to drop its ad hoc bans, regulation, taxes and subsidies in tackling climate change. The ETS is the most cost-effective tool we have for reducing emissions.”

© Scoop Media

Advertisement - scroll to continue reading
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines



Gordon Campbell: On Dune 2, And Images Of Islam


Depictions of Islam in Western popular culture have rarely been positive, even before 9/11. Five years on from the mosque shootings, this is one of the cultural headwinds that the Muslim community has to battle against. Whatever messages of tolerance and inclusion are offered in daylight, much of our culture tends to be hostile to Islam when we’re sitting in the dark, with popcorn.
Any number of movie examples come to mind, beginning with Rudolf Valentino’s role (over a century ago) as the romantic Arab hero in The Sheik...
More


 
 


Government: One-stop Shop Major Projects On The Fast Track

The Coalition Government’s new one-stop-shop fast track consenting regime for regional and national projects of significance will cut red tape and make it easier for New Zealand to build the infrastructure and major projects needed to get the country moving again... More

ALSO:


Government: GPS 2024: Over $20 Billion To Get Transport Back On Track
Transport Minister Simeon Brown has released the draft Government Policy Statement (GPS) on Land Transport, outlining the Coalition Government’s plan to build and maintain a transport system that enables people to get to where they need to go quickly and safely... More

ALSO:

Government: Humanitarian Support For Gaza & West Bank

Winston Peters has announced NZ is providing a further $5M to respond to the extreme humanitarian need in Gaza and the West Bank. “The impact of the Israel-Hamas conflict on civilians is absolutely appalling," he said... More


Government: New High Court Judge Appointed

Judith Collins has announced the appointment of Wellington Barrister Jason Scott McHerron as a High Court Judge. Justice McHerron graduated from the University of Otago with a BA in English Literature in 1994 and an LLB in 1996... More

 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels


 
 
 
 

Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.