Industry Call to Reduce Electric Vehicle Taxes in Victoria


A major trade association, the Australian Labor Group, has urged Victoria’s Labor government to postpone the decision to enact an electric vehicle tax, warning it that it will hinder the transition to cleaner vehicles. ..

The tax proposed by Victorian Treasury Secretary Tim Pallas will be legislated by July 1, with zero-emission vehicles at 2.5 cents per kilometer and hybrid vehicles at 2 cents per kilometer over a four-year period. Expected to be taxed at $ 30 million.

Innes Willox, CEO of the Australian Industrial Group, said taxes were required, but at the wrong time, the acceptance of electric vehicles would be delayed, inconsistent with the country’s goal of reducing carbon emissions. I did.

“We have to pay for road infrastructure. In Australia’s fleet, batteries and fuel cells replace petrol tanks, so it’s important to maintain a tax base in the long run,” Willox said. Says.

“But Australia is now far behind its peers in its transition. The slow penetration of clean cars has hampered the country’s progress towards emission targets and other parts of the economy. There is increasing pressure to achieve reductions in all parts. “

Epoch Times Photo
April 14, 2015, Tesla Electric Vehicle Charging Station at Star Casino in Sydney, Australia. (Photo courtesy of Ben Rushton / Getty Images)

In particular, Willox pointed out that taxes could ultimately hinder state progress in achieving carbon emission reduction targets.State-defined goals Net zero emissions by 2050 plans.

Instead, Willox suggested that the Victoria State Government should stop tariffs and prioritize more effective solutions that could help reduce overall emissions.

“Victoria and other states should put a brake on these taxes and work with the Commonwealth over the next few years to work on a worthy solution,” he said.

Victoria isn’t the only state promoting taxation on cleaner vehicles, as South Australia’s Free Government is proposing similar road charge fees in its 2020-2021 state budget ()pdf), It was scheduled to start in July this year. However, since then, South Australia has postponed the planned introduction until July 2022.

Meanwhile, the Royal Automobile Club of Victoria (RACV), an automobile organization that provides roadside assistance and other services, claims that taxes will instead benefit road users.

so Media politician“EV levies lay the foundation for a fair and efficient user payment system,” said Nicholas Platt, senior engineer at RACV.

Pratt explained that traditional petrol car drivers pay a fuel excise tax of about 42 cents per liter to fund road maintenance and infrastructure. Electric vehicles, on the other hand, completely avoid charging, even though they share the same road.

“As the number of zero-emission vehicles on our roads continues to grow, EV taxes make up for lost fuel sales taxes, allowing authorities to fund and maintain Victorian roads.” Pratt said.

Pratt also said that the levy would not prevent the spread of electric vehicles and other low-emission vehicles. However, RACV still wants the government to investigate ways that could facilitate the transition to cleaner transportation.

AAP contributed to this report.

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