Senators call for $1000 road repair tax on electric vehicles (EVs)

The road for electric vehicles (EVs) may get a little bumpy as senators are now calling for a $1000 tax on such vehicles to cover the road repair costs. Road taxes are mainly designed around diesel and gasoline vehicles, while EVs remain exempt.

The charge of $1000 for EV owners would account for 10 years of the highway funds from conventional vehicles.

Senator Deb Fischer presented this idea of an EV road repair tax by saying that EVs can weigh up to three times as much as gas-powered cars. With such weight, these vehicles can create wear and tear on the roads and bridges.

“It’s only fair that they pay into the Highway Trust Fund like other cars do. Gasoline-vehicle users typically pay $89 to $100 annually to the trust fund” said Fischer.

Transportation Secretary Sean Duffy also supports EV road tax but needs time to figure out how to apply this In action.

However, this approach is not entirely new to the EV purchase, some states are already charging EV owners to cover road repair costs.

Other than road tax, congress is also considering ending the $7,500 electric vehicle tax credit, which eases EV purchases. However, the new regime doesn’t want to force automakers to fill up the market with EVs all at once.

Instead, it wants a reasonable approach to EV manufacturing with a gradual transition from diesel to EV. This could allow the EV maker to rethink their strategies around this market in the face of low demand.

(source)