The current road user tax system that is based around fuel excise is outdated and fails to account for the full range of costs imposed by Internal Combustion Engine (ICE) vehicles. Right now, the tax primarily covers road wear, but it doesn’t address the serious consequences of air pollution, public health issues, and environmental damage caused by these vehicles.

Taxation is a powerful behaviour modifier — we usually tax the things we want people to do less of. That’s why discussion about an EV road tax so early in the clean transport transition makes little sense.

Timing

If our goals are to cut emissions, improve air quality, reduce respiratory illness, and end our reliance on imported fuel from unstable regimes, then EVs should be encouraged, not penalised. 

As a result, any implementation of a road user charge should only take place when electric vehicles are 50% of all new car sales. 

Formulation

We are calling for a reform that calculates road user taxes on ALL VEHICLES based on a more equitable equation: Emissions Intensity X Weight X Distance Travelled.

This formula more accurately reflects the true costs ICE vehicles impose on our society but also to balance the over resource usage of large and non-aerodynamic EVs that are actually very energy intensive and inefficient to run.

Emissions Intensity: The amount of pollution produced by each vehicle in real world settings.

Weight: Heavier vehicles cause more wear on road infrastructure and consume more energy.

Distance Travelled: The longer the vehicle travels, the more it contributes to road wear, congestion, environmental damage and public health problems.

This new tax structure would ensure that those who cause the most harm to the environment and our health are paying their fair share, while also providing an incentive for cleaner, more sustainable transportation options.

The current system needs to be updated to account for the long-term impact of vehicle emissions on air quality, public health, and the climate.

 We need a tax that reflects the full spectrum of costs and promotes a future of cleaner, healthier roads for all.

Join us in advocating for an equitable road user tax. Let’s ensure that everyone pays a fair share based on the true impact of their vehicle.

Sign now to support a tax system that prioritizes health, fairness, and environmental sustainability!