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This approach makes sense, but with Australia, EV sales are not close to 2% and are still 0.6% [0], and they are still really expensive upfront to buy. Also in
by layoric 6y ago
This approach makes sense, but with Australia, EV sales are not close to 2% and are still 0.6% [0], and they are still really expensive upfront to buy.
Also in Australia, the fuel tax isn’t isolated for use only for roads, it is a federal tax that can be (and has been), used for other more general expenses.
In a time of “money printer goes brrr” and tax cuts disproportionately benefiting the wealthy, nickel and diming things like EVs keeping their cost higher makes little sense. I like cleaner city air for everyone, reduced CO2 etc, adding this tax will make EV choice a lot harder as you’ll be hit with a tax larger than your fuel bill total, especially if you charge off your own solar and for people who buy a second hand EV just to drive around town. A 2.5c per km is equivalent to doubling the cost of a lot of EVs, example 2015 Nissan Leaf 24kWh does ~100km on a full charge of say 20 kWh, at 15c per kWh you are looking at $3 fuel and $2.5 tax. 15c is low but with combo of solar (which is very common in Australia) or off peak this is pretty reasonable. What isn’t reasonable is that level of tax for something that has more general benefits for trying to generate such a small total of revenue at such an early stage of sales. There are so many other ways this tax could be generated in relation to cars that would encourage uptake of these cars while still reducing impact on lower/middle income earners, I think this is a very poorly thought out tax.
[0] https://www.theguardian.com/environment/2020/aug/19/electric-vehicle-sales-triple-in-australia-despite-lack-of-government-support?CMP=Share_iOSApp_Other https://www.theguardian.com/environment/2020/aug/19/electric...
- fy20 6y agoI don't know what fuel prices are like in Australia, but here in Europe I pay around €0.05/km to fuel my ICE car. Taxes make up around 70% of that, so an EV tax of €0.015/km (1 AUD = 0.6 EUR) wouldn't be unreasonable once everyone is driving EVs. As you say there's probably a better way to tax it though (it doesn't make sense someone with a Tesla Model X pays the same as someone with a Renault Zoe). If you drive 100,000km over the lifetime of your car (this is just a nice round number for examples sake) that's only €1500 in tax revenue. Higher taxes on the sale of large and luxury cars could generate the same revenue with little impact on the overall price (if you are already planning to spend €50k+ on a new car).