Car tax changes: Expert says it’s ‘not a good idea’ for Government to ‘interfere’ with tax

Martin Lewis gives money-saving advice on VED car tax

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The Australian boss of the leading manufacturer said he does not believe in “taxpayer-funded discounts” for electric models to boost take-up. Instead, the group is pushing for a “clear direction” around infrastructure and environmental concerns which could further boost take-up.

They said it was “not a good idea” for the Government to be “interfering” with taxation on electric cars.

Kia Australia boss Damian Meredith said drivers are effectively getting discounts on “expensive cars”.

He said: “I struggle to understand discounts on (electric vehicles) for people who are buying not inexpensive cars.

“Is it fair for people to be getting discounts on (expensive) cars?

“The (taxpayer) money should be spent on putting in infrastructure (such as recharging networks).

He added: “We don’t believe in taxpayer-funded discounts for electric cars.”

His views are completely against the majority of the car industry who have called for more Government subsidies.

They say these added extras could help bring down the price of electric models to make them more available for average buyers.

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Although the comments were made by the head of Kia Australia, it opens up an important debate on whether electric car owners should be tax exempt.

In the UK, drivers are able to secure an electric plug-in grant to receive £2,500 off the price of a new electric model.

To receive the discount, the cars list price cannot be valued at more than £35,000.

This would force many firms to reduce costs to ensure customers can benefit from the discount.

Electric car owners are also exempt from all Vehicle Excise Duty (VED) road tax charges.

Drivers of fully electric models are also able to travel in city centre ULEZ schemes completely for free.

Some campaigners have called for more incentives to boost take-up of the new cars ahead of the UK’s 2030 petrol and diesel car ban.

However, some experts feel electric cars will eventually be taxed in the same way traditional petrol and diesel models are charged once popularity grows.

Speaking to earlier this year, motoring lawyer Nick Freeman has said electric car owners are “blind and deluded” if they believe they won’t one day be charged to use the roads

He said: “They are blind and deluded. The moment everybody is in electric cars or the majority are in electric cars they are going to be taxed because the Government needs to use the revenue.

“Electric cars cause pollution on their production and their disposal.

“Their tyres and brakes cause pollution and they use the roads and they churn up the road surface etc… So why shouldn’t they contribute?

“If they believe they are going to get away with this tax-free it ain’t going to happen, It’s just not going to happen.”

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