The Royal Automobile Club of Victoria has demanded an overhaul of the “broken” system of car taxes and road charges, as electric vehicles that avoid fuel excise begin to dominate the market.
Bryce Prosser, general manager for RACV public policy, said the system of taxation and road charges had to be looked at as more people bought electric cars.
“RACV is calling for a public inquiry into the problems with the existing funding system, alternative models and (the) likely effect on motorists,” Mr Prosser said. “The current system relying on fuel excise, GST and various federal and state motoring taxes is complex and broken and should be replaced with a fairer, more equitable system.
“Road-user charging that considers how, when and where we travel is more sustainable and fairer. RACV believes we need an overhaul of the current system.”
Mr Prosser’s comments come after Australian Competition & Consumer Commission chairman Rod Sims said people driving petrol cars were propping up our roads, while wealthy electric car owners drove for free because they do not pay the 41c-a-litre fuel tax. “People who buy electric cars are travelling on roads without cost, and that’s really not fair,” Mr Sims saidon the weekend.
He called for a levy on drivers based on how far they had driven, rather than fuel consumed.
Australian Motor Club general manager Shane de Gelder backed the claims, saying electric car users received a double benefit by paying less registration, as well as skipping fuel taxes. “(AMC) do understand although it may influence people to buy or drive vehicles that are environmentally more constructive … a much fairer option for funding … infrastructure is one where payment is made per kilometre of use and size of the vehicle.”
Electric car giant Tesla declined to comment.
Extracted from The Australian