Climate Alliance: An EV tax ignores the real cost of combustion

The Climate and Health Alliance argues that any new tax on EVs ignores the significant savings they deliver by avoiding tailpipe emissions.

While governments are understandably worried about replacing dwindling fuel excise revenue, they’re failing to account for the other side of the ledger: saving money by cutting funding to climate action only costs our community and the economy in other ways.

The Alliance highlights research linking traffic-related air pollution to 11,000 premature deaths and 19,000 hospitalisations in Australia annually. Apart from the lives affected, you can imagine the size of the bill for that.

As CEO Michelle Isles puts it, the policy "risks punishing people for making cleaner, healthier transport choices."

Road funding needs to come from somewhere, but with EV sales already cooling off as early incentives disappear, introducing a new tax now sends a confusing signal. Isles calls the move "premature," noting that "smart policy should support the transition – not penalise it.”

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