An Auto Media Group publication Monday 9 November 2026
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Policy & Regulation

ACT Party vows to fight ‘ute tax’

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Simon Court

The ACT party says it will seek to repeal the Clean Car Discount and Clean Car Standard if it’s part of the next government. 

Transport spokesperson Simon Court says this also includes the Zero Carbon Act “which drives such bad policy”. 

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“Why should tradies be taxed to subsidise Teslas?

“The ute tax is expected to increase the price of used cars by 20 to 25 per cent, making life tougher for everyday Kiwis grappling with the cost-of-living crisis. 

“ACT is the only party who has voted against it at every opportunity in Parliament,” Court says.

“The biggest impact of these policies has been a transfer of wealth from one group of New Zealanders to another, with tradies and working class Kiwis being taxed on their vehicle purchases to ensure a discount for people buying Teslas.

“The incentives to reduce fuel use and carbon emissions are the price at the pump. The cost of fuel already includes the cost of carbon emissions under the ETS, around 20 cents per litre for petrol and 23 cents per litre for diesel.

“ACT would use the revenues from the ETS to pay Kiwis a Carbon Tax Dividend of around $250 per person per annum, which amounts to around $750 to $1000 per household. 

“ACT believes Kiwis should have the right to choose whether to use the ETS revenues to put towards a low emissions vehicle, install a heat pump or just pay a household bill.

“In a just a few years’ time Kiwis will have more low emissions vehicles to choose from than they can possibly imagine. Right now these policies are just making life harder for everyday Kiwis during a cost of living crisis,” Court says. 

New Zealand’s phasing in of the Clean Car Standard (CCS) kicked off on December 1. 

It means all vehicle importers must now hold a CO2 account, where the CO2 emission ratings of their vehicles will be recorded.

From January 1 this year, the CO2 emission ratings of vehicles start to count towards the achievement of the CO2 targets.

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