An Income Tax (Clean Transport FBT Exclusions) Amendment Bill was drawn from the members’ ballot and presented to New Zealand’s Parliament.
The proposed legislation aims to incentivise the adoption of electric vehicles (EVs) by exempting them from Fringe Benefit Tax (FBT) for a period of five years. This can encourage employers to incorporate EVs into their company fleets.
Julie Anne Genter, the Green Party’s spokesperson on Transport, emphasised the importance of this bill in aligning with the nation’s climate goals.
“This Bill is an opportunity for the Government to address a glaring hole in its plan to electrify the vehicle fleet and meet their own commitment to reducing carbon emissions,” she remarked.
Genter highlighted the recent decline in the importation of electric vehicles following the repeal of the Clean Car Discount, coupled with concerns over impending Road User Charges (RUC) that could further deter individuals and businesses from opting for EVs.
Referencing recommendations from the EV Leadership Group and past campaign promises from the National Party, Genter urged cross-party support for the bill to maintain momentum in fostering a shift towards sustainable transportation.
By extending similar benefits to electric vehicles, the proposed legislation aims to make EVs more accessible to everyday New Zealanders, particularly by increasing their availability in the second-hand market.
She emphasised that the proposed FBT exemption is a temporary measure designed to spur immediate action towards reducing emissions and facilitating the transition to sustainable transport alternatives.
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