With the growing diffusion of electric carsThe tax advantage that BEVs have compared to combustion engine vehicles could soon vanish, especially with regards to excise duties on fuels, indirect taxes that are applied on energy products, such as petrol, diesel, LPG and other fuels. These are taxes that are paid when fuels such as petrol, diesel and LPG are purchased, which on average account for 50% of the cost of the fuel. Since the greater diffusion of electric cars and the consequent reduction of the fleet with combustion engines in circulation reduces the revenue from excise duties on fuel, the Italian government is considering the possibility of recovering the revenue lost from electric cars. Italy is not an isolated case, but follows the trend of other European countries who are considering taxing electric cars, while some have already applied them.
Excise taxes on electricity
The Minister of Economy Giancarlo Giorgetti has announced the possibility of introducing excise duties on electricity used to recharge electric cars during the‘Automotive Dealer Day where he wanted to highlight the negative impact of electrification on tax revenues.
This is because electrification will lead to a decrease in petrol and diesel cars on the roads, thus reducing revenues deriving from excise duties on fuel. The Ministry of Economy and Finance has already started work in this area following the European legislation on taxation of energy products.
Higher taxes on electric cars, where they are already applied
Several states around the world have already introduced excise duties or taxes on the electricity from electric cars, or are considering doing so. For example, the Norway, with the highest diffusion of electric cars in the world, has reintroduced 25% VAT on the purchase of electric cars, eliminated to encourage the adoption of these cars. Furthermore, the introduction of specific excise duties on electricity used to recharge cars is being discussed.
Additionally, Oslo will reintroduce the car tax for electric cars, motivated by the increased weight of such vehicles and the growth in levels of microparticles in the air, despite the reduction of greenhouse gases and nitrogen oxides. Other countries like Holland And England they are evaluating similar decisions, expected starting in 2025.
Other examples come from United Kingdom, where the tax exemption for electric cars will expire in 2025, and the introduction of a taxation system based on energy consumption is hypothesized. In France, the introduction of a “bonus malus” that would apply a tax to electric cars with high energy consumption is being discussed. In the United States, some states such as Iowa and Montana have introduced specific taxes on electricity used to charge electric cars, as well as higher annual registration fees for these types of vehicles.
This is not good news because the cost of electricity on Fast Charger columns is already inexplicably very high compared to the current price of electricity: we are talking about a deviation 2/3/4 times greater (almost €1/kW/ h versus 0.2/0.3 €/kWh) with the feeling that the cost of electricity for charging at public facilities is already taxed and includes excise duties.
Read also:
→ Taxes on electric cars, who is thinking of introducing them
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→ CALCULATE ELECTRIC CAR CHARGING TIME
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→ Video tests of ELECTRIC CARS
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