Vic Govt announces plans for new EV tax

EV tax, electric vehicle

Victoria has followed South Australia’s lead with an announcement to introduce a tax for electric vehicle (EV) drivers, drawing similar commentary.

“[It] slams the brakes on the State’s transition to a cleaner, healthier urban environment,” the Electric Vehicle Council (EVC) said.

EVC chief executive Behyad Jafari said the decision was perplexing given the State’s aspiration to reach net zero emissions by 2050.

“Victoria simply won’t reach its goal of net zero carbon emissions by 2050 if it taxes electrical vehicles,” he said.

“This is deeply counter-productive and makes very little sense. No other nation on Earth has thought it sensible to apply a special new tax to electric vehicles.

Related article: Backlash over South Australia’s EV tax

“It makes no sense to keep burning foreign oil that clogs our air with pollution. Why would we slow the transition to cleaner and healthier air by imposing a new and unnecessary tax?

“This new tax is built on a myth. Fuel excise income is not quarantined for roads and will drop in the long run. But as we shift away from petrol and diesel, diseases linked to air pollution and other costs associated with climate change will also decrease.

“Why would you tax a technology that will drive profound savings and economic benefit? Now is the time to be encouraging EVs, not holding them back with a new tax.

An EVC report, released just weeks ago, shows every electric car sold today is a net win for government coffers and a net win for the economy more broadly.

“We have been seeking a meeting with the Victorian Treasurer to explain all of this for the past year. Unfortunately, he has repeatedly declined. This is a shame as we would love the opportunity to explain how electric vehicles can support his Government’s excellent carbon reduction targets.”