[ad_1]
photo: Royal Bank of New Zealand
Petrol cars could be subject to road user charges (RUC) as early as 2027 as the government begins reforms to land transport funding.
Road construction and maintenance are financed by the National Land Transport Fund (NLTF), which is primarily made up of petrol tax revenues and RUCs paid by drivers of electric and diesel vehicles.
Transport Minister Simeon Brown announced the roadmap to bring all light vehicles onto the RUC system and remove fuel tax at the Build a Nation conference in Auckland on Thursday.
Under the new Revenue Action Plan, legislation will progress next year, with a “likely” start date for petrol car conversions set for 2027.
By 2026, we will have improved our systems to be ready.
Mr Brown said the shift would ensure all road users – regardless of the vehicle they drove – could contribute equitably to road maintenance.
File photo. Simeon Brown said consultations on the Taki toll proposals for the Manawatu Gorge, Takitimu North Line and north of Levin would begin soon.
photo: Radio New Zealand/Reece Baker
“When users pay for a service, they become more than just a participant. They become a customer, and customers naturally expect and demand the highest level of service.”
It is unclear when or how the gas tax will be repealed, as the government has already Forecasts a 12-cent tax increase in 2027.
When asked about this, Brown told ABC New Zealand that the exact timing had not yet been finalised.
The cabinet also Plans to amend charging legislation next yearBrown said this is consistent with the shift to “user pays”.
“We expect the NZTA will consider charging tolls for the construction and maintenance of all new roads, including Roads of National Significance (RoNS), and the Government will support all recommendations.”
The New Zealand Transport Agency (NZTA, also known as Waka Kotahi) is about to start consultation on toll proposals for the Manawatū Gorge and two RoNS links – Takitimu North Link and Ōtaki, north of Levin.
“These corridors provide huge benefits to New Zealanders and the freight industry and it makes sense for the beneficiaries to contribute to these projects,” Brown said.
Brown said the existing funding model was clearly “inadequate” and required major reform to ensure infrastructure was funded.
“The NLTF is under increasing pressure to remain viable. Taxpayers are having to supplement their funds and take on more debt to pay for the infrastructure they need.”
The government also said it would make greater use of public-private partnerships (PPPs) and targeted interest rates or “value capture” to finance infrastructure.
The National-ACT coalition agreement includes a commitment to “work towards replacing fuel excise for all vehicles with electronic road pricing, starting with electric vehicles”.
In March this year, the coalition passed legislation requiring light electric vehicles (EVs) and plug-in hybrid vehicles to pay RUC.
[ad_2]
Source link
