At a time when governments the planet over are considering more and more measures to assist make electric vehicles more popular, Australia’s Victoria may have engaged reverse gear with a measure that seeks to impose punitive mileage tax on EVs. From several car makers to Uber and even WWF, critics have lined up by the dozen to slam the proposal.
According to reports, the Victoria government wants to gather 2.5 cents for each kilometre that an EV travels. This is able to be paid when the registration of the EV is renewed. The onus of keeping the records would get on the owner and failing to try to do so would invite penalties. In sharp contrast, no such tax is imposed on conventional vehicles whose owners also are not expected to take care of any such record.
Electrek reports that because each car in Australia does about 13,300 kilometres a year, the approximate tax on EVs would come to be around 332 Australian dollars once a year (roughly ₹19,200).
What makes this especially worse within the particular case of Victoria is that the govt here also doesn’t offer any incentive specific to EVs which might offset not just the value of the vehicle but the per-kilometre tax imposed.
Little wonder then that companies like Hyundai, Volkswagen – among others – are vehemently against any such move and a variety of organizations came together to hold full-blown front-page advertisement during a Melbourne-based newspaper which has been titled ‘Worst Electric Vehicle Policy within the World.’
The advertisement, addressed to Victorian MPs, states that manufacturers are less likely to send Victorians their best, most affordable and 0 emission vehicles due to targeted levy. It also reminds readers that ‘no other jurisdiction has introduced such a targeted levy on the cleanest vehicles on the road without significant incentives to balance it out.’
The Victoria government has reportedly argued it’ll lose tax on fuel but this tax in Australia is anyway collected by the Australian government.
And While it’s true that governments stand to lose out on money collected within the sort of taxes imposed on petrol and diesel if EVs become widespread, it’s also recognized that there are multiple ways for an equivalent government to quite structure for the revenues lost. As such, albeit per-kilometre tax- or some such measure – is imposed, there’s a requirement to possess it balanced out with incentives so as to form buying and driving an EV viable, speaking in terms of private budgets.