The introduced taxes on electric vehicles in South Australia facing criticism

The latest taxes on electric vehicles are under scrutiny by industry experts and electric vehicle analysts. This update comes as MG introduced an SUV at an affordable price of $40000. Critics think that the government saw this development as an avenue to bring in more revenue to support the civil operations.

Australia Institute director Noah Schultz-Byard explained that this charge would disparage the uptake of electric vehicles by South Australia citizens. He ridiculed the taxes on electric vehicles, saying that they are unnecessary and uncalled for.

 Nevertheless, the sales of electric vehicles in the country have doubled in the country even without government help. Noah reiterated that the down-payment for an electric vehicle should not exceed that of ICE cars, or the essence of switching to clean energy vehicles will be nonsensical. Currently, electric vehicle batteries’ prices are plummeting and will continue to go down in the coming years. Noah explained that adding taxes on this cost is like introducing an impediment to electric vehicles’ uptake.

Rob Lucas, who championed this tax’s introduction, emphasized that this tax will even road use by everyone. Lucas noted that the tax would generate $1 million annually beginning next year. Lucas reiterated that the cash collected as taxes would support the repair and maintenance of the roads. Dr. Jake Whitehead of the University of Queensland refuted that this is an excuse to make for the tax since the government and the state utilized the money received from such charges.

Dr. Jake added that less than half of the taxes raised finds its way back to the road projects. He explained that this charge is an equivalent of the stamp duty and registration fees that the state has waivered. Economically, this tax will result in electric vehicle price escalation reducing the uptake of these clean vehicles. 

Whitehead stated that the charges leveled on these vehicles are like the retrieval of taxes from internal combustion engine cars. The head of the Electric Vehicle Council, Behyad Jafari, stated that people would opt for hybrids instead of electric vehicles to suppress the taxes. This move will only worsen the tax situation since they will be shifting these regulations to where demand escalates.

Jafari thinks that the South Australian government must become lenient with the electric vehicle industry and pause their taxes to enable people to purchase electric vehicles and suppress carbon emissions. In conclusion, South Australia has secured $18 million for the development of electric vehicle charging stations. The energy minister for this region, Dan van Holst Pellekaan, explained that this move would be significant and its climax in the next fifteen years.

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