Victorian government tax on electric vehicles a ‘deterrent’ from going green, say users

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Owners of electric vehicles say taxing them by the mile could hurt a move to go green.

The Victorian government yesterday introduced new legislation to Parliament to impose a tax on electric cars and other zero-emission vehicles.

The tax is based on the distance a vehicle travels, but regional electric vehicle (EV) owners will be disproportionately affected by any tax on them if it is calculated in kilometers driven.

From July, a charge of 2.5 cents / km will apply to electric vehicles and other zero-emission vehicles, including hydrogen vehicles, and a charge of 2.0 cents / km will apply to electric vehicles. plug-in hybrids.(ABC: Spence Denny)

‘Complex to understand’

Sue, from Castlemaine, said it would create too much of a hurdle for people considering going green.

“I wouldn’t mind. Although I’m not very well off financially, imposing this cost wouldn’t have changed my decision – but it is likely to change some.

“There are so many doubts about how it will be collected and who is going to get it, federal taxes and state taxes and it’s just a little too complicated at this point and complex to figure out.”

Victorian Treasurer Tim Pallas said it was about making sure drivers pay their fair share to use the roads and create a sustainable road network.

“We are giving confidence to new owners of electric vehicles by significantly strengthening our charging network, funded by the distance-based charge, which will reduce range anxiety as a key barrier to adoption,” did he declare.

An electric vehicle plugged into a charging station.
ABC Radio listeners say the new tax would be more unfair to area Victorians who travel longer distances.(ABC News)

Align costs with other motorists

From July, a charge of 2.5 cents / km will apply to electric vehicles and other zero-emission vehicles, including hydrogen vehicles, and a charge of 2.0 cents / km will apply to electric vehicles. plug-in hybrids.

Motorists who drive gasoline-powered vehicles pay a merchandise tax, plus a goods and services tax (GST).

The Australian Competition and Consumption Commission says the price of unleaded gasoline and diesel at the Bowser includes excise on fuel, which is taxed at 42.3 cents per liter.

For gasoline, it is 13.8 cents per liter.

Charging electric vehicle owners could bring running costs in line with the rest of Victorian motorists.

Sue said there is some merit in being taxed for every mile driven in her electric vehicle.

Distribute costs “equitably”

Close-up of a car's speedometer.
The government says the road tax would bring charges closer to users of combustion vehicles.(ABC News)

Sue said she and her husband have an electric bike and a car and use the car to go the distance when traveling to see family in Melbourne and use the train where possible.

But Brendan, from Neilborough, told ABC Central Victoria that if electric vehicle owners don’t want to pay the tax, they can just drive less and use a variety of public transportation.

Electric Vehicle Council of Australia CEO Behyad Jafari said the tax was aimed at creating fairness and long-term sustainability of the road network.

“It is already fair for people who live further in the regions and who have to drive further,” he said.

“Are you driving alongside public transport or driving somewhere that is not available to you and spreading those costs a little more evenly?” ”


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