KEY POINTS:
The Government is considering a new tax on vehicles that could add thousands of dollars to the price of a new or imported car.
The levy - which could come into force next year if approved by the Cabinet - would see vehicle importers charged $150 per gram
of CO2 emitted per kilometre travelled, above the standard of 214g CO2/km.
The tax would apply to all passenger and light service vehicles brought into the country, with the 214g limit slowly being reduced to 170g - the approximate emission level of a Suzuki Swift - by 2015.
Motorcycles and heavy trade vehicles would be exempt from the scheme.
But National finance spokesman Bill English warned last night the tax would mean hefty increases to the price of a new vehicle, from about $4000 for a van to $10,000 for a Holden Commodore in 2009.
"The family sedan or wagon is likely to go up in price by more than $7000 by 2015."
Mr English said though the new tax would apply only to new and imported used cars, second hand cars would likely also become more expensive.
Ultimately, the average age of the national fleet would rise, as drivers held on to their old cars for longer.
Associate Transport Minister Judith Tizard was yesterday playing down the proposed vehicle levy scheme as one of a number of options.
"A vehicle levy scheme was only one of three proposals put forward by officials for a vehicle fuel economy standard," she said. "No decisions have been made on which proposal will be pursued, let alone what rates would be set up under such a proposal.
"Consultation on these proposals was carried out with industry at the start of this year and officials are expected to report to ministers in the near future."
Ms Tizard said the proposals were intended to set an appropriate method of improving fuel economy in New Zealand vehicles, and thus reduce fuel use and emissions.
The fuel economy standard should influence importers and consumers to buy vehicles with better fuel economy, she said.
AA spokesman Mike Noon said he had earlier heard talk of reducing vehicle emissions to the 170g level, but believed the paper had been sent back for further consultation. The AA was waiting for the Government to report back on submissions it made on the subject in April.
