Summarised by Centrist
Shares in Auckland tech firm E-Road jumped 30% after the government confirmed plans to replace fuel excise with universal road user charges (RUCs) as early as 2027.
But motoring expert Clive Matthew-Wilson says the whole idea is a “shambles in the making” and may be a cover for privatising New Zealand’s roads.
Under the current system, petrol tax is collected seamlessly at the pump: over $2 billion a year at an admin cost of just $20 million. RUCs, by contrast, would require two transactions, one for petrol, another for distance, with no clear efficiency gains for the 70% of Kiwis still driving petrol vehicles.
“There is zero chance this will come close to the current system in cost or simplicity,” Wilson said.
While officials claim a digital system could streamline admin and cut compliance costs, Wilson warns the opposite is likely. Roughly half a million vehicles are already off the books due to lapsed registration or warrant issues. Enforcing mileage-based tolling on that cohort would be near impossible. “Are we going to start jailing people who already can’t pay their fines?” he asked.
The bigger concern is where it all leads. Wilson believes the real goal is to toll every road in the country and gradually shift control to private operators. “Just like with power prices, they promised lower costs, more choice. Who still believes that?” he said.
He also question the rollout. The system may rely on smart tags or in-car electronics to track distance, raising privacy concerns. The Privacy Commissioner has warned mileage data can reveal personal habits and must be tightly safeguarded.
Wilson says taxing EVs fairly is reasonable, but the broader scheme appears ideological and ill-conceived. “This looks like one of those PowerPoint ideas that sounds great until you try to run a country on it.”
