“Why should tradies be taxed to subsidise Teslas? ACT says the Clean Car Discount and Clean Car Standard should go,” says ACT’s Transport spokesperson Simon Court.

“The ute tax is expected to increase the price of used cars by 20 to 25 per cent, making life tougher for everyday Kiwis grappling with the cost-of-living crisis. ACT is the only party who has voted against it at every opportunity in Parliament.

“The Imported Motor Vehicle Industry Association (VIA) say the policy doesn’t work because of a lack of EV supply, and in particular a lack of electric options for utes and vans. Purchasers of petrol and diesel vehicles are paying more for no reason.

“It has also been reported that price rises in the electric vehicle market have already soaked up consumer rebates so those buying electric cars are no better off either. Prices have increased by between $3,000 and $11,000 per vehicle.

“The biggest impact of these policies has been a transfer of wealth from one group of New Zealanders to another, with tradies and working class Kiwis being taxed on their vehicle purchases to ensure a discount for people buying Teslas.

“ACT would repeal the Ute Tax, and the Zero Carbon Act which drives such bad policy. The incentives to reduce fuel use and carbon emissions are the price at the pump. The cost of fuel already includes the cost of carbon emissions under the ETS, around 20 cents per liter for petrol and 23 cents per litre for diesel.

“ACT would use the revenues from the ETS to pay kiwis a Carbon Tax Dividend of around $250 per person per annum, which amounts to around $750 to $1000 per household. ACT believes Kiwis should have the right to choose whether to use the ETS revenues to put towards a low emissions vehicle, install a heat pump or just pay a household bill.

“In a just a few years time Kiwis will have more low emissions vehicles to choose from than they can possibly imagine. Right now these policies are just making life harder for everyday Kiwis during a cost of living crisis. We hear ya.”

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Simon Court