Transitioning to electric vehicles keeps encountering new hindrances each day. For Victorians, their issue is the tax that electric car owners will have to pay. Various involved parties have gone ahead and used harsh words such as shameful and backward to describe the move.
However, one can’t fail to see where governments proposing this tax are coming from, no doubt. For so long, car users have been paying fuel exercise. The money has been helping the government collecting it with its operations in one way or the other. With it gone, there is a gap in terms of revenue, and a replacement seems necessary. That’s what has befallen the people of Victoria, Australia. They have to pay 2.5 cents for each kilometer that one’s electric vehicle travels. Its treasurer Tim Pallas came up with this idea towards the end of last year.
It won’t be the first Australian state to consider this idea since, in South Australia, a proposal is already on the table. It is also underway for the case of New South Wales. It is becoming a possibility since the fuel exercise revenue has increased. However, one would argue that the income had been dropping way before the electric vehicles came along. After all, the diesel and petrol vehicles available today are quite efficient.
A particular survey depicts the real picture of how people feel about an electric vehicle tax. It involved 2,000 participants, and the Electric Vehicle Council commissioned it. It shows how people are willing to transition to the clean energy vehicles since almost half of the drivers participating said their wish is to buy an electric vehicle the next time they decide to buy a car. 80% of the voters feel that the government is still not doing enough to support this transition. Almost half of 2000 also thinks that when comparing the old auto industry and the new one, the former got more support than the latter.
The last observers have some backing from statistics. Before 2017, local automakers industries got a lot of government support. Holden, Ford, and Toyota would get up to $5.4 billion between 2008 and 2020. Given the cars produced around that time, it was equivalent to $2,200 for every vehicle made.
On the other hand, the electric vehicle tax will mean an additional $4,000 for every EV. That won’t encourage people to buy them since as it is they are already more expensive than the diesel and petrol ones by a mile, over $20,000 to be specific. Whereas it would mean an additional revenue of $30 million within four years, how it affects the transition may have the dire consequences. That’s probably why parliament won’t pass the proposal, as was the case of South Australia.https://industribune.net/