One fact seems indisputable: Americans have come to hate taxes and any suggestion by a politician to raise them is tantamount to political suicide. The problem is that public infrastructure requires funding – and lots of it. Critics of this disparity would argue that a lack of political will to raise fuel taxes has left roads, bridges and tunnels across America crumbling in recent decades.
Making the transition to electrified vehicles will bring with it a vast array of issues that will need to be dealt with. There are, of course, the obvious problems of charging EVs in urban areas and disposal and recycling of batteries. Then there is the problem of taxation. Vehicles need paved roads to travel on. Paving costs a lot of money. While there are some toll roads in the U.S. that drivers pay to traverse, most infrastructure is financed through fuel taxes. The presumption is that the am
Changing the road tax legislation in Germany wasn't an easy thing to do. This tax is managed at the state level, but a nationwide modification will be enforced now that the German federal government has decided to give €9 billion in compensation to the states. The new road tax, like similar legislation in other European countries, is aimed at stimulating motorists to drive fuel-efficient cars. Here's how the new tax works, starting July 1st:
Over the weekend, we heard that the new Transportation Secretary, Ray LaHood (R), was considering implementing a tax on the number of miles people drive each year to raise the funds for road infrastructure. The idea was solidly rejected by our readers - and very quickly by the Obama Administration. One problem with a mileage tax, as Green Car Advisor points out, is that there is then no tax-based incentive to use less fuel. As the Washingto Post reports, the idea was pretty short-lived, with Whi
Currently, the UK has one of the most expensive car taxation systems in the world. Besides VAT (sales tax) at time of purchase, drivers in Britain must pay fuel taxes and a road tax (Vehicle Excise Duty) a corporate tax (for fleets), and sometimes a Congestion Charge, as in London. Manchester is about to vote on a congestion tax as well.
Ford UK has announced improvements to the C-Max model that bring the car into the important sub-120g/km of CO2 range. The 1.6 TDCi models now emit just 119g/km and that means the Vehicle Excise Duty has been reduced from £120 to £35 (£30 starting in April). With this improvement, Ford claims that it's become the UK's leading manufacturer of cars under the 120 g/km limit, with 51 models in total. Once April rolls around, the Fiesta 1.4-liter and 1.6-liter TDCi models will pay ev
Until now, Spain was known for having a simple system to tax cars based on CO2 emissions. It's called "Impuesto de matriculación," which we can roughly translate as "registration tax." However, this tax is paid at purchase and there's no further effect during the life cycle of the vehicle. Spaniards do pay an additional tax on cars called "Impuesto de Vehículos de Tracción Mecánica" or "de Circulación" which is a simple road tax, except that it's paid to munici
According to James Ray, Acting Administrator of the Federal Highway Administration, the current system of deriving money for the upkeep of the nations roadways is "unpredictable and unsustainable." He adds, "Without a doubt, our federal approach to transportation is broken, and no amount of tweaking, adjusting or adding new layers on top will make things better." This view is understandable in the wake of record high gas prices, which are causing consumers to drive less and therefore produce les
A win is a win, right? We're content to consider the fact that two-thirds of new car buyers in the U.K. are considering going green for their next car purchase a good thing, despite the fact that most of them are doing so to save money, not the environment. What Car? group editor Steve Fowler says that "with the cost of living increasing and with wages failing to keep up, car buyers are saying financial pressures are of more concern than helping the environment." If this is the case, it seems th
So much has been written already regarding London Mayor Ken Livingstone's new road tax that we never really spent too much time analyzing the plan itself. Fortunately, though, Clean Green Cars did it for us. EDIT: The Vehicle Excise Duty is different than the new congestion charge that Ken Livingstone is implementing. Sorry for the confusion, and thanks for the correction. As it stands, the road tax divides vehicles up into twelve "bands", separated by how much CO2 they emit. All of that seems t
The taxes paid in each of the 27 country members of the European Union differ considerably from one country to another. We're speaking not only about the purchase tax (usually Sales Tax, or Value Added Tax, and sometimes Immatriculation) but also the road tax, which drivers have to pay annually in order to be able to get around in their vehicles.