NZ Government Introduce a Clean Car Discount Scheme
The NZ Government’s has recently announced its plans to introduce the Clean Car Discount scheme, which provides rebates for electric vehicles and plug-in electric vehicles July 2021 and with new levies applying to higher-emitting vehicles from January 2022.
This government initiative is primarily about getting more people into cleaner cars and transitioning the vehicle market from combustion engines into new sustainable technology engines.
This new policy offers vehicle buyers up to $8,625 discount on new electric Vehicles (EVs).
Vehicles valued up to $80,000 will be eligible for the discount eg. One model of Tesla is eligible, as well as popular EVs such as Nissan Leaf.
The new program eligibility applies to both new or used imported plug-in hybrids, as well as ordinary internal-combustion vehicles that pollute less (discounts depending on their emissions profile). For example, a new Mitsubishi Outlander plug-in hybrid buyer would be eligible for $5750.
How does the NZ government propose to pay for this program?
By placing a fee on existing high emitting vehicles.
This planned policy has caused some concerns which will probably be further raised in early 2022 as the new emissions charges are first implemented on high pollutant combustion vehicles.