Latest news with #FuelExciseDuty
NZ Herald
2 days ago
- Business
- NZ Herald
NZX steady as Eroad rallies on road user charge changes
'Of course, we have an earnings season starting next week, so you tend to see volumes a little lighter as people await the company announcements and guidance especially,' Sullivan said. 'US markets were positive, even though India has been hit with a higher tariff level than initially quoted. Our interest rates are buoying the market more than geopolitical instability and tariffs.' On the NZX, Eroad rallied by 26.42% today after the Government unveiled a raft of changes to the country's Road User Charges system in preparation for 3.5 million vehicles becoming liable for the charges. As has previously been signalled, the current Fuel Excise Duty is expected to be abolished in the coming years, with all vehicles moving to Road User Charges (RUCs). Eroad's share price lifted 42c to $2.01 after 3.1 million shares changed hands on turnover of $5.9m. 'Obviously they're seen as a potential frontrunner for being able to offer a solution in that area. Material uplift in volume and share price and their market cap would put them up as a NZX 50 constituent as well, so the potential to eventually be included in NZX indices.' Elsewhere, Radius Healthcare shares rose 3.90% to $0.40 on high volume of 10.4 million shares after it announced an upgrade to its projected underlying earnings before interest and tax. Sullivan said Radius doesn't seem to be able to put a foot wrong at the moment, noting its share price rose 22% in July, 22% in June and 25% in April. Chorus also had another positive day, with its share price lifting 1.21% or 11c to $9.20. Contact Energy, meanwhile, fell 0.76% to $9.10 after $11.1m in turnover was traded. US markets Wall Street stocks rose on Wednesday local time, with Apple and most other large tech companies rallying as markets largely shrugged off US President Donald Trump's latest tariff hikes. Apple piled on more than 5% after White House officials said the tech giant plans an additional US$100 billion ($168b) in capital spending in the United States. Amazon and Google parent Alphabet were among the other large tech names that also rose. 'By standing up and publicly announcing a domestic investment with President Trump, it reduces the likelihood of Trump imposing new tariff burdens on Apple,' said FHN Financial's Chris Low. The Dow Jones Industrial Average finished up 0.2% at 44,193.12. The broad-based S&P 500 gained 0.7% to 6,345.06, while the tech-rich Nasdaq Composite Index climbed 1.2% to 21,169.42, less than 10 points from an all-time record. Trump ordered an additional 25% tariff on Indian goods. The levy, which is expected to come into force in three weeks, is due to New Delhi's continued purchase of Russian oil. – Additional reporting AFP Tom Raynel is a multimedia business journalist for the Herald, covering small business, retail and tourism.
NZ Autocar
2 days ago
- Automotive
- NZ Autocar
Government to replace petrol tax with electronic RUCs
Cabinet is working to transition New Zealand's 3.5 million light vehicles to paying for our roading network through electronic road user charges. This will replace the petrol tax, says Transport Minister Chris Bishop. 'The abolition of petrol tax, and the move towards all vehicles (whether they be petrol, diesel, electric or hybrid) paying for roads based on distance and weight, is the biggest change to how we fund our roading network in 50 years,' Mr Bishop says. 'Right now, New Zealanders pay Fuel Excise Duty (FED, or petrol tax) of about 70c per litre of petrol every time they fill up at the pump with a petrol car. Diesel, electric, and heavy vehicles pay Road User Charges (RUC) based on distance travelled. 'This revenue is funnelled into the National Land Transport Fund which funds the building of new roads and maintaining our existing ones. 'For decades, petrol tax has acted as a rough proxy for road use, but the relationship between petrol consumption and road usage is fast breaking down. For example, petrol vehicles with better fuel economy contribute less FED per kilometre towards road maintenance, operations, and improvements. 'We are also seeing a fast uptake of fuel-efficient petrol hybrid vehicles. In 2015, there were 12,000 on our roads, while today there are over 350,000. 'As our vehicle fleet changes, so too must the way we fund our roads. It isn't fair to have Kiwis who drive less and who can't afford a fuel-efficient car paying more than people who can afford one and drive more often.' 'This is a change that simply has to happen. The government has recognised reality and is getting on with the transition. 'The Government's plan will eventually see all vehicles pay based on actual road use (including weight) regardless of fuel type. 'The transition will happen in stages, beginning with legislative and regulatory reform to modernise the current RUC system and enable private sector innovation. 'The current RUC system is outdated. It's largely paper based, means people have to constantly monitor their odometers, and requires people to buy RUC in 1000km chunks. 'We're not going to shift millions of drivers from a simple system at the pump to queues at retailers. So instead of expanding a clunky government system, we will reform the rules to allow the market to deliver innovative, user-friendly services for drivers. 'A handful of E-RUC companies already do this for about half of our heavy vehicle fleet and there are several companies, both domestic and international, with innovative technology that could make complying with RUC cheaper and easier.' Key legislative changes the Government is progressing include: 'The changes will support a more user-friendly, technology-enabled RUC system, with multiple retail options available for motorists,' Mr Bishop says. 'Eventually, paying for RUC should be like paying a power bill online, or a Netflix subscription. Simple and easy. 'I expect to pass legislation in 2026, followed by an updated Code of Practice for RUC providers. We will also engage with the market in 2026 to assess technological solutions and delivery timelines. In parallel, NZTA and Police will upgrade their systems to support enforcement in a digital environment. 'By 2027, the RUC system will be 'open for business', with third-party providers able to offer innovative payment services and a consistent approval process in place. 'At this stage, no date has been set for the full transition of the light vehicle fleet. That's a deliberate choice, as we're focused on getting the system right rather than rushing its rollout. 'This is a once-in-a-generation change. It's the right thing to do, it's the fair thing to do, and it will future proof how we fund our roads for decades to come.'
Scoop
3 days ago
- Automotive
- Scoop
Next Steps On Replacing Petrol Tax With Electronic Road User Charges
Minister of Transport Cabinet has agreed to a series of important legislative changes to enable the transition of New Zealand's 3.5 million light vehicles to paying for our roading network through electronic road user charges, rather than petrol tax, says Transport Minister Chris Bishop. 'The abolition of petrol tax, and the move towards all vehicles (whether they be petrol, diesel, electric or hybrid) paying for roads based on distance and weight, is the biggest change to how we fund our roading network in 50 years,' Mr Bishop says. 'Right now, New Zealanders pay Fuel Excise Duty (FED, or petrol tax) of about 70c per litre of petrol every time they fill up at the pump with a petrol car. Diesel, electric, and heavy vehicles pay Road User Charges (RUC) based on distance travelled. 'This revenue is funnelled into the National Land Transport Fund which funds the building of new roads and maintaining our existing ones. 'For decades, petrol tax has acted as a rough proxy for road use, but the relationship between petrol consumption and road usage is fast breaking down. For example, petrol vehicles with better fuel economy contribute less FED per kilometre towards road maintenance, operations, and improvements. 'We are also seeing a fast uptake of fuel-efficient petrol hybrid vehicles. In 2015, there were 12,000 on our roads, while today there are over 350,000. 'As our vehicle fleet changes, so too must the way we fund our roads. It isn't fair to have Kiwis who drive less and who can't afford a fuel-efficient car paying more than people who can afford one and drive more often.' 'This is a change that simply has to happen. The government has recognised reality and is getting on with the transition. 'The Government's plan will eventually see all vehicles pay based on actual road use (including weight) regardless of fuel type. 'The transition will happen in stages, beginning with legislative and regulatory reform to modernise the current RUC system and enable private sector innovation. 'The current RUC system is outdated. It's largely paper based, means people have to constantly monitor their odometers, and requires people to buy RUC in 1000 km chunks. 'We're not going to shift millions of drivers from a simple system at the pump to queues at retailers. So instead of expanding a clunky government system, we will reform the rules to allow the market to deliver innovative, user-friendly services for drivers. 'A handful of E-RUC companies already do this for about half of our heavy vehicle fleet and there are several companies, both domestic and international, with innovative technology that could make complying with RUC cheaper and easier.' Key legislative changes the Government is progressing include: Removing the requirement to carry or display RUC licences, allowing for digital records instead. Enabling the use of a broader range of electronic RUC devices, including those already built into many modern vehicles. Supporting flexible payment models such as post-pay and monthly billing. Separating NZTA's roles as both RUC regulator and retailer to foster fairer competition. Allowing bundling of other road charges like tolls and time of used based pricing into a single, easy payment. 'The changes will support a more user-friendly, technology-enabled RUC system, with multiple retail options available for motorists,' Mr Bishop says. 'Eventually, paying for RUC should be like paying a power bill online, or a Netflix subscription. Simple and easy. 'I expect to pass legislation in 2026, followed by an updated Code of Practice for RUC providers. We will also engage with the market in 2026 to assess technological solutions and delivery timelines. In parallel, NZTA and Police will upgrade their systems to support enforcement in a digital environment. 'By 2027, the RUC system will be 'open for business', with third-party providers able to offer innovative payment services and a consistent approval process in place. 'At this stage, no date has been set for the full transition of the light vehicle fleet. That's a deliberate choice, as we're focused on getting the system right rather than rushing its rollout. 'This is a once-in-a-generation change. It's the right thing to do, it's the fair thing to do, and it will future proof how we fund our roads for decades to come.' Note: This work progresses the National-ACT coalition agreement to replace fuel excise taxes with electronic road user charging.
1News
3 days ago
- Automotive
- 1News
Govt on next steps to replacing fuel tax with road user charges
Cabinet has agreed on a set of changes as it looks to roll out electronic road user charges to all light vehicles as it seeks to replace petrol tax. A replacement of fuel excise taxes in favour of electronic road user charging is part of National's coalition agreement with ACT. Currently New Zealanders help pay for the roads via their vehicle licence (or 'rego') fee, road user charges (RUC) and the petrol excise duty (PED). Minister of Transport Chris Bishop said the transition will ensure all vehicles pay based on actual road use (including weight) regardless of fuel type. "Right now, New Zealanders pay Fuel Excise Duty (FED, or petrol tax) of about 70c per litre of petrol every time they fill up at the pump with a petrol car. ADVERTISEMENT "Diesel, electric, and heavy vehicles pay road user charges based on distance travelled." Bishop said as hybrid and petrol efficient vehicles become more common, the way New Zealand funds its roads needed to change. He said in 2015, there were 12,000 hybrid vehicles in the country, whereas now, there are over 350,000. "For decades, petrol tax has acted as a rough proxy for road use, but the relationship between petrol consumption and road usage is fast breaking down. Minister of Transport Chris Bishop. (Source: Q and A) "For example, petrol vehicles with better fuel economy contribute less FED per kilometre towards road maintenance, operations, and improvements. "As our vehicle fleet changes, so too must the way we fund our roads. It isn't fair to have Kiwis who drive less and who can't afford a fuel-efficient car paying more than people who can afford one and drive more often." ADVERTISEMENT Timeline Bishop said the transition will happen in stages, beginning with legislative and regulatory reform to modernise the current road user charges system and enable private sector innovation. "The current road user charges system is outdated. It's largely paper based, means people have to constantly monitor their odometers, and requires people to buy road user charges in 1000km chunks." Bishop said he expects to pass legislation in 2026, followed by an updated code of practice for road user charge providers and an upgrade in systems for both New Zealand Transport Agency and police. "By 2027, the RUC system will be 'open for business', with third-party providers able to offer innovative payment services and a consistent approval process in place. "At this stage, no date has been set for the full transition of the light vehicle fleet. That's a deliberate choice, as we're focused on getting the system right rather than rushing its rollout." The morning's headlines in 90 seconds, new report into submersible implosion, body found in Auckland park, and mixed injury news for the Warriors. (Source: 1News) ADVERTISEMENT Key legislative changes the Government is progressing include: Removing the requirement to carry or display road user charge licences, allowing for digital records instead. Enabling the use of a broader range of electronic road user charge devices, including those already built into many modern vehicles. Supporting flexible payment models such as post-pay and monthly billing. Separating NZTA's roles as both road user charge regulator and retailer to foster fairer competition. Allowing bundling of other road charges like tolls and time of used based pricing into a single, easy payment. "The changes will support a more user-friendly, technology-enabled RUC system, with multiple retail options available for motorists," Bishop said. "Eventually, paying for RUC should be like paying a power bill online, or a Netflix subscription. Simple and easy." Who currently pays road user charges? Vehicles that weigh more than 3500kg pay RUC. Lighter vehicles also pay RUC if they are powered by diesel, electricity or another fuel that isn't taxed at its source. ADVERTISEMENT Light electric vehicles (EVs) and plug-in hybrids began paying road user charges last year. EVs that weigh more than 3500kg are still exempt from paying RUC, but will start paying them after December 31, 2025. 'Fairer and more efficient' - Motor Industry Association Motor Industry Association chief executive Aimee Wiley is supportive of the Government's plan, which she said will make for "efficient administration and compliance". "Converting the whole fleet to road user charges will be a major undertaking, and we will gain nothing if we do not make use of the latest technology to manage the system digitally and in real time. It'll make compliance much easier and administration less expensive." She said it is the "correct approach" to determine the technology platform for the new system before deciding the approach and timeframe for the transition. Overall, the association, which represents manufacturers and suppliers of new vehicles to New Zealand, said the move "places all vehicles on the same footing, making the system fairer and more efficient".
NZ Herald
3 days ago
- Automotive
- NZ Herald
How the Government is preparing to ditch petrol tax, move all cars to road user charges
This includes: Removing the requirement to carry or display RUC licences, allowing for digital records instead. Enabling the use of a broader range of electronic RUC devices, including those already built into many modern vehicles. Supporting flexible payment models such as post-pay and monthly billing. Separating NZ Transport Agency Waka Kotahi's (NZTA) roles as both RUC regulator and retailer to foster fairer competition. Allowing bundling of other road charges like tolls and time of used based pricing into a single, easy payment. Bishop said the intent is to make paying for RUCs 'user-friendly' and similar to paying a power bill online or a Netflix subscription. Currently, the system is mostly paper-based and drivers have to monitor their odometers to check what distance they have driven. It also requires owners to buy RUCs in 1000km chunks. 'We're not going to shift millions of drivers from a simple system at the pump to queues at retailers. So instead of expanding a clunky government system, we will reform the rules to allow the market to deliver innovative, user-friendly services for drivers. 'A handful of e-RUC companies already do this for about half of our heavy vehicle fleet and there are several companies, both domestic and international, with innovative technology that could make complying with RUC cheaper and easier.' He said the abolition of Fuel Excise Duty, or petrol tax, and the move to all vehicles paying RUCs based on distance and weight 'is the biggest change to how we fund our roading network in 50 years'. 'Right now, New Zealanders pay Fuel Excise Duty [FED] of about 70c per litre of petrol every time they fill up at the pump with a petrol car. Diesel, electric, and heavy vehicles pay Road User Charges based on distance travelled. 'This revenue is funnelled into the National Land Transport Fund, which funds the building of new roads and maintaining our existing ones.' He said the move to all vehicles paying RUCs comes as the relationship between petrol consumption and road usage is 'fast breaking down'. 'For example, petrol vehicles with better fuel economy contribute less FED per kilometre towards road maintenance, operations, and improvements,' Bishop said. 'We are also seeing a fast uptake of fuel-efficient petrol hybrid vehicles. In 2015, there were 12,000 on our roads, while today there are over 350,000. 'As our vehicle fleet changes, so too must the way we fund our roads. It isn't fair to have Kiwis who drive less and who can't afford a fuel-efficient car paying more than people who can afford one and drive more often.' The legislation is expected to pass in 2026 which will then be followed by an updated Code of Practice for RUCs providers. 'We will also engage with the market in 2026 to assess technological solutions and delivery timelines. In parallel, NZTA and police will upgrade their systems to support enforcement in a digital environment,' Bishop said. 'By 2027, the RUC system will be 'open for business', with third-party providers able to offer innovative payment services and a consistent approval process in place. 'At this stage, no date has been set for the full transition of the light vehicle fleet. That's a deliberate choice, as we're focused on getting the system right rather than rushing its rollout.'
