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> The EV industry accepts that a road user charge is inevitable as the car fleets transition to electric, but argue it should be introduced fairly and evenly. I
by yaacov 6y ago
> The EV industry accepts that a road user charge is inevitable as the car fleets transition to electric, but argue it should be introduced fairly and evenly. It points out the petrol excise goes into general revenue rather than road funding, and EV owners pay more tax than petrol car owners due to higher taxes from GST, stamp duty, and luxury car tax.
I think it's ok for one particular tax to be regressive if the general taxation scheme is not.
- horsawlarway 6y agoI'm not really sure I agree the general taxation scheme is not regressive still. It varies, but at least for ACT, they waive stamp tax on new electric cars, and registration is $100 cheaper. I also didn't include GST tax for fuel in my numbers above (10% of total fuel cost). So yes, luxury tax does kick in at a lower number (which I find silly), but I think overall, you're still creating a situation where electric is paying less to use the same roads. That said - Agree with the line you quoted. I think an even and fair tax makes sense, but I don't see how you do that at the local level when the fuel tax is federal.