New Zealand to Replace Petrol Tax in Major Road Funding Reform

New Zealand has announced plans for a radical reform of how it pays for roading, turning its back on petrol taxes that were first introduced almost a century ago.

The government will abolish the tax and replace it with road user charges for all light vehicles, Transport Minister Chris Bishop said Wednesday in Wellington. Legislation will be introduced in 2026 to allow a new system to be ready in 2027, but no firm implementation date has been set, he said.

Fuel taxes are currently about NZ$0.70 ($0.41) a liter — accounting more than a quarter of the petrol price — ...