Home / Business and Economy / New Zealand Abandons Petrol Tax, Adopts Road User Charges
New Zealand Abandons Petrol Tax, Adopts Road User Charges
6 Aug
Summary
- New Zealand plans to abolish petrol tax by 2027
- Road user charges will replace the tax for all light vehicles
- Legislation to enable the new system will be introduced in 2026
In a significant move, the New Zealand government has announced plans to abolish the country's long-standing petrol tax and replace it with a new road user charge system for all light vehicles. According to Transport Minister Chris Bishop, the government will introduce legislation in 2026 to pave the way for the new system, which is expected to be implemented by 2027.
The current petrol tax, first introduced almost a century ago, will be phased out as part of this radical reform. The new road user charges will apply to all light vehicles, marking a departure from the traditional fuel-based taxation model. This shift aims to provide a more equitable and sustainable approach to funding the country's road infrastructure.
The decision to move away from petrol taxes reflects the government's recognition of the changing landscape of transportation, including the growing adoption of electric and hybrid vehicles that do not contribute to fuel-based revenue. The new road user charges are designed to ensure all drivers contribute fairly to the maintenance and development of New Zealand's roads.
