While the US electric car market is perhaps more buoyant than many others around the world, there are fears that the US government will at some point introduce a specific electric car tax.
The federal government has so far refused to confirm plans to introduce an electric car tax in the future although a number of state authorities have been looking at this particular income stream.
So, will the US government introduced a countrywide electric car tax in the future? Reasons for introducing an electric car tax The simple fact is that many governments around the world receive a significant amount of their income, either directly or indirectly, from the oil industry.
As a consequence, if the electric vehicle market continues to grow and indeed becomes more popular than the traditional fuel market then there will likely be a reduction in government income from this specific area.
Whether we like it or not funds raised from oil and gas companies around the world do allow governments to run public services such as healthcare, education, etc.
We are talking about billions upon billions of dollars and if this income stream is reduced then it will have to be replenished in other areas.
Will that mean an electric car tax? Reasons for not introducing an electric car tax Time and time again in the past we have seen new industries created and developed around the world with specific investment from government.
Time and time again we have seen promises that no additional taxes will be introduced, for example the air travel industry, only for future governments to renege on these promises.
What about the EV market? To fully appreciate the consequences of introducing a tax on the electric car market we need to look at the relatively small sales at this moment in time and the impact that additional costs would have in the future.
The truth is that no government could afford to introduce an electric car tax at this moment in time, at least not on a national basis, although local authorities such as those in the US may well decide otherwise.
The introduction of a comprehensive EV tax at this moment in time has the potential to kill the market before it has really found its feet.
It would also negate the billions upon billions of dollars invested by governments around the world into electric car manufacturing and electric car technology.
Where is the sense in that? What next? The next few years will be vital for the electric vehicle industry as sales are expected to pick up in line with the worldwide economy.
At the same time we will likely see a worldwide reduction in tax income from oil and gas companies upon which many governments have depended in times gone by.
In many ways it seems only a matter of time before we see some form of additional electric car taxation as a means of replenishing the funds which will be lost to reduced usage of petrol/gasoline as a fuel for your vehicle.
Governments around the world may promise time and time again they have no plans to introduce such taxes but it is difficult to take a step back, look at the situation in the cold light of day and see where the additional income required to replenish that lost from the oil and gas industry will come from.
Conclusion Taxation is not an issue at the moment with regards to the electric vehicle market although some states in the US are making noises about a one-off charge.
Governments around the world are investing billions upon billions of dollars into the electric vehicle market and the introduction of a tax at such an early stage would crucify the industry and negate the potential return on funds invested so far.
However, watch out for the introduction of specific electric car taxes in the medium to longer term as US government finances and US government spending come under pressure.
You have been warned!