Article: Call to tax electric cars

[ozbob]

It was only a matter of time ...

From the Herald Sun click here!

Call to tax electric cars

Call to tax electric cars

   Matt Johnston
   From: Herald Sun
   June 02, 2011 12:00AM

A TAX on power used in electric cars should be considered by Treasury, a parliamentary committee says.

An inquiry into the Government's plan to increase LPG fuel excise heard that electric cars should be treated similarly.

The committee's report said while few cars run on electricity, it is an emerging issue.

Treasury should start consulting industry "with a view to developing an excise equivalent tax for the electricity used by electric vehicles in the medium term".

"One of the key moti-vators behind the legislation is to reduce distortions in the fuels sector," the committee said.

The Government said it would consider the report.

Blade Electric Vehicle director Ross Blade said the recommendation was "breathtaking".

"I find it extraordinary to think that's being talked about now, before people have an incentive to drive (an electric car)," he said.

The recommendation comes as the heated debate on a carbon tax continues, and Australians are told to use cleaner fuels.

Prof Ross Garnaut sang the praises of electric cars in his final report into climate change this week.

"Zero emissions road vehicles now seem set to be the most promising source of abatement in the transport sector," he wrote.

Opposition members on the economics committee argued against increasing tax on gas.

The Coalition continued its attack on the carbon tax proposal yesterday, with environment spokesman Greg Hunt calling for the Government to rule out petrol being included.

Electric vehicles (cars and trucks) will be part of a transport solution in the future, but only a part.  At the recent meeting of the Environmental Engineers  I suggested that Treasury would not stand by and allow fuel excise revenues to disappear.  Here is the classic response.