Tiny tax change could drive major electric vehicle uptake

7:01 am today

Businesses purchase 60-70 percent of new cars in New Zealand, so the tax change will have an immediate effect.

Tax changes in this year's Budget will lead to more affordable second-hand electric vehicles for ordinary buyers, an electric vehicle advocacy group says.

The government has changed the fringe-benefit tax rates for motor vehicles, with EVs and hybrids to attract lower rates than petrol and diesel engines from next April.

Drive Electric says that will encourage businesses to purchase EVs over other vehicles, meaning more second-hand EVs will flow into the market, as fleets are turned over.