EV Tax - welcome to the future
Discussion
Mods - please leave this here instead of moving it to the EV forum. It is an issue which will interest everyone, not just EV users.
South Australia has announced a world first tax on EV usage.
https://www.news.com.au/technology/motoring/motori...
https://www.caradvice.com.au/900290/south-australi...
They obviously aren't prepared to put up with the loss of fuel revenue and have decided to act. A bold move given EVs are still with early adopters and the only real incentive to buy one is the lower cost.
Now the lever to get EVs on the roads will be legislation to ban ICE, rather than lower running costs.
South Australia has announced a world first tax on EV usage.
https://www.news.com.au/technology/motoring/motori...
https://www.caradvice.com.au/900290/south-australi...
They obviously aren't prepared to put up with the loss of fuel revenue and have decided to act. A bold move given EVs are still with early adopters and the only real incentive to buy one is the lower cost.
Now the lever to get EVs on the roads will be legislation to ban ICE, rather than lower running costs.
Jader1973 said:
Mods - please leave this here instead of moving it to the EV forum. It is an issue which will interest everyone, not just EV users.
South Australia has announced a world first tax on EV usage.
https://www.news.com.au/technology/motoring/motori...
https://www.caradvice.com.au/900290/south-australi...
They obviously aren't prepared to put up with the loss of fuel revenue and have decided to act. A bold move given EVs are still with early adopters and the only real incentive to buy one is the lower cost.
Now the lever to get EVs on the roads will be legislation to ban ICE, rather than lower running costs.
Most likely price ice off the road through tax imo, its easier and more readily accepted by joe public than being ‘told’ you cant drive ice (through legislation)South Australia has announced a world first tax on EV usage.
https://www.news.com.au/technology/motoring/motori...
https://www.caradvice.com.au/900290/south-australi...
They obviously aren't prepared to put up with the loss of fuel revenue and have decided to act. A bold move given EVs are still with early adopters and the only real incentive to buy one is the lower cost.
Now the lever to get EVs on the roads will be legislation to ban ICE, rather than lower running costs.
Taxing ev would be the first logical step in that process, making EVs look cheap is easy if you price everything else up.
Edited by galtezza on Wednesday 11th November 05:30
CS Garth said:
Interesting - particularly as some of the electric crowd seem to think that roads are paid for by the magic money tree and ‘climate’ entitles then to free motoring for the foreseeable future.
VED just goes in the pot like everything else so suppose if they spend 90 grand on a Tesla there will be a fair chunk of VAT in that, plus 5 percent VAT on the electricity they use but that pales next to miniscule amount they use vs ICE and the fuel duty and VAT on that.I dont think any car should escape VED , maybe it should be by weight ? then EV's would get caught and would make manufacturers focus even more on lighter cars and might make the punters think more before buying a 2.5 tonne SUV they don't strictly need ?
The big issue is going to be the massive loss in revenue as fuel duty is lost.
They have had this already with the stepped VED which cost the government millions and hence why that has gradually been snuck back in.
I'm sure we'll see higher night rates soon for people charging vehicles at home, combined with the lovely smart meter roll-out. Hour by hour charge rates are on their way.
They have had this already with the stepped VED which cost the government millions and hence why that has gradually been snuck back in.
I'm sure we'll see higher night rates soon for people charging vehicles at home, combined with the lovely smart meter roll-out. Hour by hour charge rates are on their way.
J4CKO said:
CS Garth said:
Interesting - particularly as some of the electric crowd seem to think that roads are paid for by the magic money tree and ‘climate’ entitles then to free motoring for the foreseeable future.
VED just goes in the pot like everything else so suppose if they spend 90 grand on a Tesla there will be a fair chunk of VAT in that, plus 5 percent VAT on the electricity they use but that pales next to miniscule amount they use vs ICE and the fuel duty and VAT on that.I dont think any car should escape VED , maybe it should be by weight ? then EV's would get caught and would make manufacturers focus even more on lighter cars and might make the punters think more before buying a 2.5 tonne SUV they don't strictly need ?
Road Tolls is the most likely outcome to me, whether via telematics or other, but this will take 10 years plus
It was always on the cards.
Offer tax breaks / incentives to get people to swap and the slowly start clawing back lost money on VED / fuel duty by increasing tax on EV’s. It’s already starting with company car drivers x this year was 0% and next year it’s 1%, going up thereafter. It’s still not a huge amount, but it’ll change soon enough. It’s been a major factor in colleagues swapping to EV’s in the last year or so.
Offer tax breaks / incentives to get people to swap and the slowly start clawing back lost money on VED / fuel duty by increasing tax on EV’s. It’s already starting with company car drivers x this year was 0% and next year it’s 1%, going up thereafter. It’s still not a huge amount, but it’ll change soon enough. It’s been a major factor in colleagues swapping to EV’s in the last year or so.
ridds said:
The big issue is going to be the massive loss in revenue as fuel duty is lost.
They have had this already with the stepped VED which cost the government millions and hence why that has gradually been snuck back in.
I'm sure we'll see higher night rates soon for people charging vehicles at home, combined with the lovely smart meter roll-out. Hour by hour charge rates are on their way.
Would there be a way of telling who is charging an EV at home?They have had this already with the stepped VED which cost the government millions and hence why that has gradually been snuck back in.
I'm sure we'll see higher night rates soon for people charging vehicles at home, combined with the lovely smart meter roll-out. Hour by hour charge rates are on their way.
CS Garth said:
J4CKO said:
CS Garth said:
Interesting - particularly as some of the electric crowd seem to think that roads are paid for by the magic money tree and ‘climate’ entitles then to free motoring for the foreseeable future.
VED just goes in the pot like everything else so suppose if they spend 90 grand on a Tesla there will be a fair chunk of VAT in that, plus 5 percent VAT on the electricity they use but that pales next to miniscule amount they use vs ICE and the fuel duty and VAT on that.I dont think any car should escape VED , maybe it should be by weight ? then EV's would get caught and would make manufacturers focus even more on lighter cars and might make the punters think more before buying a 2.5 tonne SUV they don't strictly need ?
Road Tolls is the most likely outcome to me, whether via telematics or other, but this will take 10 years plus
A Winner Is You said:
ridds said:
The big issue is going to be the massive loss in revenue as fuel duty is lost.
They have had this already with the stepped VED which cost the government millions and hence why that has gradually been snuck back in.
I'm sure we'll see higher night rates soon for people charging vehicles at home, combined with the lovely smart meter roll-out. Hour by hour charge rates are on their way.
Would there be a way of telling who is charging an EV at home?They have had this already with the stepped VED which cost the government millions and hence why that has gradually been snuck back in.
I'm sure we'll see higher night rates soon for people charging vehicles at home, combined with the lovely smart meter roll-out. Hour by hour charge rates are on their way.
If it is charged on usage then you pay for your actual pollution, not your ability to pollute which is how emission or CC based taxes currently work.
The time to get the best value out of an EV is running out, when they become the same price as ICE to run, it's going to be a harder sell. Having said that our household could quite easily have one EV and one ICE as we do a lot of small journeys and have space at home for charging.
Fittster said:
Olivergt said:
when they become the same price as ICE to run, it's going to be a harder sell. .
When they are the only option it shouldn't be hard to sell them.No chance I’m next 5 years IMO. There are 40 million cars on UK roads road. Something like 200k BEVs. Gov is losing practically nothing from VED and subsiding all over the shop. Taxing EVs would neutralise all the carefully planned incentives, in order to claw back VED on 0.5% of the fleet?
If I had an Ev I would consider buying solar and wind for the home to help reduce charging cost both interns of the cost of the electricity and the tax on charging, although I can see them trying to tax your own electricity generation.
God forbid anyone anyone try’s to not pay tax on something.
God forbid anyone anyone try’s to not pay tax on something.
A Winner Is You said:
ridds said:
The big issue is going to be the massive loss in revenue as fuel duty is lost.
They have had this already with the stepped VED which cost the government millions and hence why that has gradually been snuck back in.
I'm sure we'll see higher night rates soon for people charging vehicles at home, combined with the lovely smart meter roll-out. Hour by hour charge rates are on their way.
Would there be a way of telling who is charging an EV at home?They have had this already with the stepped VED which cost the government millions and hence why that has gradually been snuck back in.
I'm sure we'll see higher night rates soon for people charging vehicles at home, combined with the lovely smart meter roll-out. Hour by hour charge rates are on their way.
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