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Media Release – New Tax on Electric Vehicles Will Stall Emission Reductions in Transport Sector

Nov 27, 2020 | Media Releases, News

 Rod Barton believes that the introduction of a tax on electric vehicles will discourage sales. This financial disincentive will stall efforts to reduce emissions from the transport sector. This seems a counter-intuitive and backwards response to climate change.

Under the proposal, from mid-2021 a 2.5 cent/km charge would apply to electric and zero-emissions vehicles, while a 2 cent/km charge would apply to plug-in hybrid vehicles.

Electric vehicles are a critical factor in meeting global goals on climate change. Electric vehicles are responsible for significantly lower emissions over their lifetime than conventional vehicles. This gap is expected to widen as electricity generation becomes less carbon intensive.

With Australia’s market for electric vehicles already falling behind other developed nations, this tax could have a damaging impact on the uptake of electric vehicles and undermine environmental concerns.

Road funding reform is much needed. Rod Barton supports the notion of a road user tax that acts to reduce the use of private vehicles, reducing emissions and traffic in the process. However, this is not the time.

Rod Barton believes more needs to be done to address Victoria’s greenhouse gas emissions. This begins with supporting new technology that reduces our carbon footprint, not taxing it.

Quotes attributable to Member for Eastern Metropolitan and the Leader of the Transport Matters Party Rod Barton MP:

“The Government should be encouraging the uptake of electric vehicles, not introducing a tax that does the complete opposite.”

 

ENDS

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