Release: Minister confirms Labour’s reduced RUC rate for PHEVs

The Government has accepted Labour’s change to the Road User Charge (RUC) discount for hybrid vehicles, meaning there will still be some incentive for people to buy greener vehicles.

“During the select committee’s hearing of the Road User Charges (Light Electric RUC Vehicles) Amendment Bill, Labour put forward an amendment to increase the discount for hybrid vehicles from 30% to 50% of the current rate for petrol vehicles,” transport spokesperson Tangi Utikere said.

“Because National MPs didn’t participate in the vote, the select committee supported the change – and now the Minister has said he will as well.

“This is an unexpected but welcome win for the climate and the continuation of Labour’s goal of incentivising the purchase of cleaner and more efficient vehicles,” Tangi Utikere said.

The Labour Government began work on extending RUC to hybrid and electric vehicles in 2022. Though it was considering a lower discount rate than the 50% proposed by Labour at Select Committee, the 2022 proposal was alongside the Clean Car Discount which encouraged the uptake of electric vehicles at the time of purchase.

“This comes at a time the Government is rolling back climate policies without a clear plan for how they’re going to meet our 2030 emissions targets,” Tangi Utikere said.

“It also shows the importance of scrutiny and the select committee process. It is a better bill as a result of the public having the opportunity to submit and a debate being had about the proposal.

“I’m proud of my colleague Arena Williams for standing up for the climate and putting forward this change, and glad the Minister has seen the sense in keeping an incentive for purchasing greener vehicles,” Tangi Utikere said. 

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