Perrottet's tax idea would seal NSW's fate as the dirty car capital of the world13 November 2020
New South Wales Treasurer Dominic Perrottet will cement his state’s status as the dirty car capital of the world if he follows through with a scheme to whack a tax on electric vehicles, according to the Electric Vehicle Council.
EVC chief executive Behyad Jafari said the Treasurer’s puzzling position, if retained, would be a crushing disappointment to those who could see the abundant potential of electric vehicles for New South Wales.
“No other jurisdiction in the world – aside from the South Australian Coalition Government this week – has thought it sensible to apply a special new tax to electric vehicles,” Mr Jafari said.
“Yes, in the long run governments won’t be receiving as much in fuel excise as people drive more efficient vehicles. But that’s a good thing. Burning less foreign oil in our cars is good for our city air, it’s good for our health, it’s good for our climate, and it’s good for our economic sovereignty.
“The money paid in fuel excise doesn’t get quarantined for roads. That’s a myth. If tax is dwindling from one area, governments don’t have to make it up from that same area. That would be like whacking a new tax on nicotine gum because you’re worried about a drop in the tobacco excise. It’s madness.
“One day, when electric vehicles start becoming common place, the time may come to consider new taxes. But at this point in our history, when we should be doing everything possible to encourage people to switch to electric vehicles, this tax would be pure poison.
“Of all the jurisdictions in the world New South Wales would have to be one of the last who should worry about the speed of EV uptake. New South Wales is already languishing up the back of the pack in the global race toward electric vehicles. Mr Perrottet now wants to blow out our tyres.
“Modelling by EY, released just weeks ago, shows every electric car sold today is a net win for government coffers and a net win for the economy more broadly. Why would any government try to discourage that?
“As any Liberal worth their salt will tell you, when you whack a big new tax on something you discourage its use. That’s exactly what would happen here to the determent of every citizen in New South Wales – and to the detriment of the planet.
“New South Wales is already a global dirty car magnet because other nations have restrictions on emissions. Mr Perrottet’s plan would well and truly cement that status.”
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