Should Government Add Extra Taxes to Electric Cars?

We’ve been trying to get people interested in green transport, including electric cars, for a very long time. This can be done in many ways including free rego, free parking, government subsidy, and the right to use bus and transit lanes for electric car drivers.

Indeed European and North American electric car drivers enjoy just such incentives. Australia is not only behind the 8-ball, it is behind an iron curtain when it comes to electric car incentives.

In the latest proposal, several state governments propose additional taxes on drivers of electric cars. They claim that these drivers do no contribute to the upkeep of roads etc. These are the drivers who use tollways, and park at council meters.

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It is a nonsense to suggest that there is a separate pot of money, paid for by fuel taxes and registration, to find roads. That simply is not true. Instead of discouraging green transport, perhaps the government could increase the fuel tax. They might even stop corporate tax avoidance, making those large organisations responsible for slightly more than ZERO TAX.

We see government as a partner in the development of new technology, not as an opponent of it.

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“The Victorian Government’s proposed legislation to introduce a new road charging framework for zero and low emissions vehicles is premature and might hinder the uptake of these vehicles on Victorian roads,” according to the Federal Chamber of Automotive Industries.

“An efficient road user charging framework associated with comprehensive tax reform has the potential to benefit governments and motorists and is an issue that must be considered for the future,” according the FCAI Chief Executive Tony Weber.

“However, it does not make sense to apply the charge to zero emission vehicles right now as these technologies are still in their infancy and account for a relatively small portion of vehicle sales across Australia.

“Right now, Governments should be encouraging the uptake of these technologies with positive policy initiatives particularly around emissions targets, infrastructure development and appropriate incentives for fleets and private consumers rather than introducing charges that potentially reduce the incentive for these customers to buy these vehicles.”

Mr Weber added that a nationally consistent approach to future road user charging frameworks should be introduced to provide clarity and consistency across the country rather than the potential for different approaches across each State.

“There is no doubt that Governments must consider future revenue streams to ensure continuing investment in road and transport infrastructure. The automotive sector is wanting to be a part of those discussions to support positive outcomes driven by efficiency and effectiveness for all stakeholders. However, at current volumes, the funds raised through this proposed legislation will be minimal.

“Until zero and low emission vehicles become more mature technologies, Governments should be avoiding the temptation to subject them to new taxes and charges that impact on their acceptance from consumers.

“Advanced economies across the world are finding ways to encourage and incentivize the introduction of these vehicles rather than introducing charges that are barriers to their market growth,” Mr Weber said.