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> Don't forget about the taxation aspect - as the sales of petrol and diesel fall, so does the tax revenue. That depends on whether people put the money they s
by audunw 5y ago
> Don't forget about the taxation aspect - as the sales of petrol and diesel fall, so does the tax revenue.
That depends on whether people put the money they save in a savings account, or actually spend them on other taxable goods and services. And it depends on the tax rate on fuel and electricity in that country. Fun fact, the consumer tax on electricity is much higher than that on fuel in Norway (and the fuel tax is pretty steep already here). But electricity is so cheap that it's still extremely affordable. And obviously, an EV will spend much less money on electricity, so yes, the revenue from tax on electricity will be lower.
But there's another side of the equation. Norway recently found out they could save millions on reduced ventilation requirements when building a new tunnel. It's also likely that health care costs will be reduced, although that's harder to measure.
IMO, governments should just increase other taxes if they have budget troubles due to the shift to EVs. Preferably higher taxes on the wealthy. Then we can slowly work on finding ways to tax according to actual road use. Maybe more toll roads, or maybe a tamper-proof device that measures and reports miles driven.
- logifail 5y ago> That depends on whether people put the money they save [..] Talking about the money people will save could be termed somewhat off-message given that it appears EVs cost significantly more up-front than the ICE equivalent... "Switching to an electric vehicle still has many barriers, including high upfront costs"[0] "Expensive prices for electric cars could hold back the UK’s transition from fossil fuel vehicles, the industry has warned, amid signs that demand for electric vehicles (EVs) is waning"[1] Over the entire lifetime of the vehicle it may be a completely different story, but how many vehicle purchasers are really planning five to ten years ahead? [0] https://www.bbc.com/news/business-56441639 https://www.bbc.com/news/business-56441639 [1] https://www.theguardian.com/environment/2020/sep/04/higher-price-of-electric-cars-a-concern-for-more-than-half-of-uk-consumers https://www.theguardian.com/environment/2020/sep/04/higher-p...