New taxes an “attempt to punch down” EV owners as leaked Gov report warns it will “discourage uptake”

An allegedly leaked internal document has revealed that even a government working group is warning that state-based EV taxes will “discourage EV uptake” and “face strong opposition”.

The document – a Victorian Government working group report prepared for the Board of Treasurers – describes any proposed new taxes that don’t also include concessions as “likely to discourage ZLEV uptake” and as having the “potential to drive market incentives away from ZLEV and toward fuel efficient ICEVs.”

Still, the report explores the options available to ensure a version of a fuel excise is collected on zero-emission vehicles, including the potential introduction of GPS trackers to charge owners on a distance-travelled basis.

The document has riled Australia’s green groups, including The Australia Institute’s Climate & Energy Program, with that body’s director – Richie Merzian – describing the move to introduce an EV tax as an “attempt to punch down” Australia’s existing EV owners.

“This document shows there are real risks associated with the introduction of a new tax on electric vehicles,” he says. “Privacy issues, practical difficulties, constitutional concerns and discouraging the uptake of EVs are just a few of the problems highlighted in this discussion paper.

“EVs are a cleaner, quieter and safer transport alternative. Now is not the time to put a great big new tax on this emerging industry.

“This seems like an orchestrated attempt to punch down on the 20,000 Australians who have adopted clean, green technology which will help to reduce Australia’s transport emissions.”

The news follows last week’s reports that three Australian states – NSW, Victoria and South Australia – are considering introducing a new revenue raising strategy aimed at the owners of EVs and low-emissions vehicles.

Ostensibly a replacement for the fuel excise that ICE drivers are slugged with, most plans include a charge-per-kilometre for EV owners. In Victoria, for example, that charge is 2.5 cents.