Tradies tax to subsidise Teslas comes into effect

Wed, 30 Mar, 2022

“Commuters across New Zealand will be disappointed that from 1 April the Government’s deeply unpopular car tax will be coming in to effect,” says ACT’s Transport spokesperson Simon Court.

“It sounds like it should be an April Fool’s gag, but from Friday onwards the Government will be taxing tradies to subsidise Teslas.

“The Clean Car Standard is virtue signalling nonsense from a Government that hates petrol-powered cars and is out of touch with the practicalities of many Kiwis’ day to day lives.

“It’s meant to lower emissions, but in reality it won’t stop a single gram of carbon from being emitted. Transport emissions are covered by the Emissions Trading Scheme, so reducing one gram from transport allows one gram to be emitted somewhere else. Treasury’s analysis says it won’t have a significant impact on emissions.

“The Government has been told by both industry and consumers that the tax won’t work. The Motor Industry Association (MIA) estimated it will instead increase the price of light vehicles by 15-20 per cent.

“This is bad public policy that has been rammed through for ideological reasons. It is shameful that Labour are punishing farmers, tradies, large families and more when we’re in a cost of living crisis.

“Back in the real world, tradies need utes for a variety of tasks and will still buy them. The feebate scheme just means they’ll face an extra tax to fund Teslas for wealthier car buyers.”