New Zealand to Drop Petrol Taxes in Favour of Road User Charges

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New Zealand to Drop Petrol Taxes in Favour of Road User Charges

A registration label is dispensed from a self-service payment terminal in New Zealand. Photo courtesy NZ Transport Agency.

In what Transport Minister Chris Bishop has called the biggest change to how New Zealand funds its road network in 50 years, the government has announced its intention to abolish petrol taxes and replace them with electronic road user charges (RUCs) for all light vehicles.

Heavy vehicles, diesel-powered machinery such as utes and farm equipment, and electric vehicles already pay under an RUC system.

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