Electric Vehicle Council slams Victoria Government for proposed punitive mileage tax on electric cars

Electric Vehicle Council slams Victoria Government for proposed punitive mileage tax on electric cars

Automaker Hyundai Motor Company and many other organizations have openly opposed the Victorian government’s controversial proposal, under which a punitive mileage tax would be implemented exclusively on electric cars. The government of Victoria, Southeastern Australia, currently collects no such tax on gasoline-powered cars. It does not even collect a gas tax at all. But, under the new plan, the state government is trying to implement a punitive mileage tax exclusively on electric cars. As the state is not offering any sort of electric vehicle (EV) incentives, there would be no way to balance out the controversial proposed tax if it really gets implemented.

Hyundai, Volkswagen (VW), Uber, ABB, and WWF are among the many organizations that have come out against the proposed EV tax. Calling the controversial tax the world’s “worst electric vehicle policy,” they got a full-page advert published in “The Age” newspaper in Melbourne.

In an open letter published in the same daily newspaper, the Electric Vehicle Council (EVC) argued that no other jurisdiction in the entire world has implemented any such tax targeting the cleanest vehicles on the road.

Opposing the proposal, the EVC wrote in the open letter, “The Andrews Government’s proposed tax on electric vehicles is the only stand-alone electric vehicle tax in the world. No other jurisdiction has introduced such a targeted levy on the cleanest vehicles on the road without significant incentives to balance it out.”

Apart from the aforementioned organizations, the long list of opponents includes EV charger manufacturer Tritium, JetCharge, EV truck converter SEA Electric, the Clean Energy Council, the Australian Conservation Foundation, Solar Citizens, Doctors for the Environment Australia, GetUp, and Environment Victoria.

The controversial EV tax would be assessed at a rate of 2.5 cents per kilometer would be charged each time registration is renewed. EV owners would have to maintain records for at least five years. Those who would fail to produce the records would be slapped with penalties. However, owners of gasoline-powered cars would not be required to produce any such mileage records. Thus, only EV owners would have to face additional burden in terms of time and cost.

In Australia, the average car is driven nearly 13,300 kilometers per year, which means the average tax would be $332 per year (US$255), which would be higher than any EV tax in the United States.