Discontinuation of gasoline and diesel vehicles by 2035 due to climate change: Grattan Institute

The Australian think tank Grattan Institute is urging the government to discontinue sales of new gasoline and diesel vehicles by 2035 to help meet its net zero emissions target for 2050.

inside that New report, Think tanks said zero-emission vehicles should be exempt from stamp duty, import tax and luxury car tax, making them cheaper and more accessible to the general public.

Eliminating the stamp duty will reduce the cost of electric vehicles (EVs) by 6.5%, and eliminating the import tax will further reduce prices by another 5%.

“The government needs to promote a thriving market for zero-emission vehicles by exempting inefficient taxes such as import taxes, luxury vehicle taxes and stamp duty,” the report said. “They need to secure a place for drivers across the country to charge their electric models.”

The institute believes that the best policy is a comprehensive emission tax, but accepts the “unfortunate reality” that it will not happen soon in Australia.

“Climate clocks are ticking. We can’t wait for emission prices,” he said. “Therefore, this series identifies sector-specific policies that Australia should implement on its path to net zero.”

However, zero-emission vehicles are out of most budgets, even with the benefits of the proposed tax cuts. For example, only seven EV models available to Australians are less than $ 70,000 ($ 51,600), but buying an EV less than $ 40,000 ($ 29,500) will be zero.

Epoch Times Photo
The E3 Glory SUV sticker will be seen before the electric car show on October 25, 2019 at the Olympic Park in Sydney, Australia. (MarkKolbe / Getty Images)

Federal Independent Parliamentarian Craig Kelly previously told The Epoch Times that EV subsidies and tax cuts are “a complete misallocation of resources” and will not open the market to low-income households.

“The $ 70,000 car is for the very wealthy,” Kelly said. “Why do they need additional grants?”

Deputy Prime Minister Barnaby Joyce said on Sunday that he would consider supporting the deadline for a net zero emission target if details on costs and impacts were clearly stated.

“We want to know exactly what is involved, and we want to know exactly what the cost is.” Joyce told ABC..

The report also recommends increasing the track width limit from 2.5m to 2.6m (8.2ft to 8.5ft) in line with other country limits. This allows imported zero-emission large vehicles to be used without expensive changes.

It also comes after the European Union (EU) Proposed to ban Gasoline and diesel vehicles from 2035 on July 14th.

Daniel Khmelev contributed to this article.