I don’t think electric is a problem in the current system, I think hybrid vehicles are the issue. Electric cars operate entirely in one system, but hybrids are across two systems with an unclear split.
We saw the government change their mind over RUC rates for hybrids due to pushback over what the rate should be, because they are split between two systems. And thatsthat’sonly the plugin hybrids. Non-plugin ones don’t charge from electricity so are not under the RUC system, but use a lot less petrol than other petrol cars so pay less tax.
I agree this is not a surprise. It also should help the people claiming their tax back for off-road use of vehicles (I presume they won’t need to do this paperwork anymore).
I do wonder if they are prepared for the debts and debt collection that will inevitably come from a system like RUC. You can’t not pay petrol tax, you can just not pay RUC. As a RUC payer, I’d be keen for some system where it pays itself.
Oh my point wasn’t that we should tax EVs at the charger, but that RUC for EVs can coexist fine with petrol tax. It’s the grey areas of hybrids that really drive the need for petrol vehicles to be on the RUC system.
Given an ever increasing amount of vehicles are either plug in hybrid or EV, this is probably the best way to do this.
It’s also an election promise, and part of the coalition agreement, so not really a surprise.
I don’t think electric is a problem in the current system, I think hybrid vehicles are the issue. Electric cars operate entirely in one system, but hybrids are across two systems with an unclear split.
We saw the government change their mind over RUC rates for hybrids due to pushback over what the rate should be, because they are split between two systems. And thatsthat’sonly the plugin hybrids. Non-plugin ones don’t charge from electricity so are not under the RUC system, but use a lot less petrol than other petrol cars so pay less tax.
I agree this is not a surprise. It also should help the people claiming their tax back for off-road use of vehicles (I presume they won’t need to do this paperwork anymore).
I do wonder if they are prepared for the debts and debt collection that will inevitably come from a system like RUC. You can’t not pay petrol tax, you can just not pay RUC. As a RUC payer, I’d be keen for some system where it pays itself.
I’ve got a diesel vehicle myself, I’d love a system that automatically pays RUCs. They exist, but are aimed at businesses with a fleet of vehicles.
With electric vehicles, while they operate purely on electricity, taxing it would be a nightmare as you can “refuel” an EV anywhere.
Oh my point wasn’t that we should tax EVs at the charger, but that RUC for EVs can coexist fine with petrol tax. It’s the grey areas of hybrids that really drive the need for petrol vehicles to be on the RUC system.
I definitely agree with you there.