EV Tax - welcome to the future

[Jader1973]

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.

[galtezza]

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)

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

[Ashtray83]

Well that was always going to happen!? Does that Now that opens up the flood gates for the rest of the world to start charging? I don’t believe an emissions based system if fair anyway. Should be based on usage perhaps they should put it on tyre usage

[CS Garth]

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.

[J4CKO]

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 ?

[ridds]

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.

[CS Garth]

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 ?

It’s difficult - most people I know with Teslas buy them through their company so get their VAT back, write them down at 100% capital allowances year one and then of course there is no BIK so that’s a massive chunk of lost tax there just to get them into an EV.

Road Tolls is the most likely outcome to me, whether via telematics or other, but this will take 10 years plus

[Court_S]

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.

[Justin Case]

Why not charge on cost? This would encourage smaller and Lighter EVs which would do more for the environment.

[A Winner Is You]

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?

[Gad-Westy]

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 ?

It’s difficult - most people I know with Teslas buy them through their company so get their VAT back, write them down at 100% capital allowances year one and then of course there is no BIK so that’s a massive chunk of lost tax there just to get them into an EV.

Road Tolls is the most likely outcome to me, whether via telematics or other, but this will take 10 years plus

Just half the VAT back on EV's. But I agree with the sentiment, they're very tax efficient as company vehicles.

[Olivergt]

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?

I've been saying this for a couple of years now. The loss of revenue from fuel duty and road tax on ICE cars will need to be recovered some how. Personally I would like to see it go on usage rather than anything else.

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]

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.

[A Winner Is You]

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 doubt that around that time they'll conveniently discover something that shows EVs are worse for the environment than previously though

[_Hoppers]

Ashtray83 said:

Should be based on usage perhaps

The government should maybe put a huge amount of tax on fuel.................

[LimJim]

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?

[MDUBZ]

nothing in life is certain except for death and taxes.. The bds get you one way or another.

[MB140]

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.

[swisstoni]

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?

I recon that cars and domestic meters will be required to ‘talk’ to each other in the future so that a higher tariff can be charged.

[TooLateForAName]

Meh. Its australia. Most of the politicians are owned by fossil fuel companies