Heavy transport: Reduced RUC rate takes effect

Wednesday 27 Apr 2022

Government support is now in effect for more road users impacted by the current global energy crisis with the passing of legislation to enable a key part of the Government’s transport package. The passing of the Road User Charges (Temporary RUC Reduction Scheme) Amendment Bill delivers a 36 percent reduction across all legislated rates, effective 21 April.

The reduction is part of the Government’s transport support package to help New Zealanders through the global energy crisis caused by the war in Ukraine.

The package includes:
• Petrol excise duty cut by 25 cents a litre.
• 36% reduction across all legislated RUC rates.

“As a nation, we are experiencing the impacts of pandemic induced inflation and a war on the other side of the globe. We know households are feeling the effects too, so we’ve taken swift action that will make a difference for families and kiwi businesses,” said Michael Wood.

“The passing of this legislation allows us to reduce the road user charges more quickly. The Bill instructs Waka Kotahi to apply a 36 percent reduction across all legislated rates of road user charges. This reduction in road user charges will decrease the operating costs for light and heavy diesel vehicles.”

“We also know that operating costs matter. The reduced RUC rates will make it cheaper to transport goods and services and for families to get where they need to go.”

“A key beneficiary of the reduction will be our road transport industry. The road transport industry plays a vital role in supplying food and other essential goods across the country. It is important to the Government that we backed the industry through these challenging times, and I’d like to acknowledge them for their constructive input into the scheme.

The Government has also put protections in place to ensure the integrity of the system.

“To discourage bulk purchasing, those purchasing road user charges during the period of the reduction will be required to complete an online declaration form stating that they are only purchasing charges that they require for that period,” said Michael Wood. “Waka Kotahi will undertake spot checks of large or suspicious purchases and, where appropriate, take enforcement action. Enforcement action could include the charging of unused road user charges at the non-reduced rate.

Meanwhile on the fuel levy cuts, it’s now possible they may be extended.

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