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David Franklin

Posted 2013-03-21 14:34 (#1235)
Subject: Tax on Hybrid Cars

Regular

Posts: 80

Interesting story from across the pond that might be worth watching.

http://www.staffordcountysun.com/news/virginia_region/article_63559...

The gist of the story is that as more people change their cars to more fuel efficient ones, fuel tax revenues are following. So Virginia state government have come up with a new way to get money out of people.
In the UK cars that emit less than 100g/km of CO2 are exempt from paying vehicle tax. But as the proportion of the cars in the transport mix increases, it's only a matter of time before this changes.

Martin

Posted 2013-03-23 09:33 (#1236 - in reply to #1235)
Subject: Re: Tax on Hybrid Cars

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Posts: 275
100

Very good point- and, more generally, one of the problems with using taxation both to raise public finance and to direct public behaviour - which the article demonstrates, with one side saying everyone needs to pay to use the roads (i.e. focusing on revenue-raising) and the other talking about a tax on virtue (focusing on tax as a way of penalising anti-social behaviour).

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