AIDE MEMOIRE: CABINET PAPER
Road User Charges (Exemption Period for Light Electric RUC
Vehicles) Order 2016
Cabinet Legislation Committee
Authorise the submission of the Order to the Executive Council
I propose that the Cabinet Legislation Committee authorise the submission of the Road
User Charges (Exemption Period for Light Electric RUC Vehicles) Order 2016 (the
proposed Order) to Executive Council.
Road user charges (RUC) are payable on all vehicles with a gross vehicle mass of more
than 3,500 kilograms, or vehicles with motive power that is not wholly derived from petrol.
In 2009, as a first step in encouraging the uptake of electric vehicles, the Government
decided that light electric vehicles would be exempt from RUC starting from 1 October
2009 until 2013.
Following a review of the RUC exemption, Cabinet agreed on 16 April 2012 that the RUC
exemption for light electric RUC vehicles be extended until 30 June 2020.
On 21 March 2016, as part of the electric vehicles package, Cabinet agreed to rescind
their earlier decision and instead extend RUC exemption for light electric RUC vehicles
until they comprise two percent of the light vehicle fleet, which is expected to occur by
The proposed Order will amend the Road User Charges (Exemption Period for Light
Electric RUC Vehicles) Order 2012 and extend the RUC exemption period for light electric
RUC vehicles from 30 June 2020 to 31 December 2021.
The work on extending the RUC exemption to heavy electric vehicles is being progressed
separately through the Energy Innovation Bill.