Luxury car tax petition

jimmymc

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#2
There is a government petition asking for the tax surcharge to be abolished for EVs.

https://petition.parliament.uk/petitions/260696
I don’t want it to be abolished. If I can afford more than £40k for a car, I can afford the luxury tax (and the country needs the money!). There should be a campaign for Tesla to produce a car that comes under that amount.
 

lance.bailey

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#3
we have a luxury tax here in BC in that the tax rate jumps from 12% to 15% over a certain limit. jumps more for another limit. Annoying but there it is.
 
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#4
The only gripe I have is that it goes against government support for EVs Governments set legislation that drives changes, EV and EV infrastructure should be a bit better. Having said that, the car companies should push hard to get under that ammount, that is how things work.
 
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#6
I've stretched myself to get this car. I agree the tax should not apply to EV's, it would be an extra incentive, but the way I look at it is that you're making £100's if not £1000's in fuel savings which will off-set this additional tax.

Perhaps this new government pledge to be net zero carbon by 2050 will have some results here???
 

Jayc

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#7
If Toyota or Nissan or another manufacturer came up with an econobox EV with a range of more than 300 miles for under 40k then sure, we have a choice but that is not the case . As it stands, a significant component of the cost of an EV goes towards range therefore, the tax threshold is unfair for EVs. Especially at the time when governments across the world offer incentives to encourage EV adoption. As @Ian S points out, we end up paying the same amount of annual tax as a Mustang 5L for which the high tax rate is meant to be a deterrent.
 
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#10
Didn't I read somewhere that Tesla made a very low range car for Canada to get around tax, then you could upgrade over the air to use what was actually there? Maybe Tesla should have done that? Sell SR- that has 50mile range and comes in under the £40 mark (even with VAT added FFS), Then the end user can unlock it with a £5k or something upgrade. Pretty sure that's all they do with the SR and SR+ but to a lesser level.
So whilst we can moan to the government, it is the responsibility of the car makers to work around these restrictions somehow.
Personally I'm not too worried about it, I've had my Smart ED for nearly 5 years now and not paid a penny in road tax, will be sad to see her go really, it is the cheapest car to run by a long way, no tax, insurance is around £100 mark and I charge up at work or at home from solar, so it has cost me very little to run. This M3 I'm getting will be £500 more for insurance, £300 or so more in tax and probably will not be as efficient as the smart as it weighs 1.6 tonnes (which is sodding heavy). But, I'm getting it for the tech and the ability to take over when on the extremely dull M25 when it slows to 0mph!

So yes, the government should offer more incentives for EV cars but then the car manufacturers need to get smart with it. Currently the UK buyers are like dogs with 2 dicks and will buy anything (me included), I'm sure when the first wave has passed, maybe Tesla will look at how they can get around the £40k issue. Something like.

1 Tesla model 3 £39,999 including tax
FSD upgrade £5000
Stereo upgrade £500
Heated seats upgrade £200
increase range, various costs for various increases.
many other things

Total cost £48,000 or so.

All over the air.
 
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#11
Everybody wants good things from the Government, including me, but I do not support this petition. It is far too narrow, far too obviously selfish. What we need is to separate out the environment/pollution tax and the road and transport maintenance tax into separate, distinct taxes. EVs should then be exempt from the environment/pollution tax*, but should pay the full roads maintenance tax.
We currently have two taxes of course. "Road tax", an annual tax, and fuel duty, a tax on fuel consumed, ie on mileage that also penalises big vehicles. So just hypothecate these taxes to be for road and transport costs in the first case, and to penalise/remediate pollution on the other. Problem solved.
*Yes I know some power generation pollutes and adds carbon, but that issue can be dealt with by other means.
 
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#12
Everybody wants good things from the Government, including me, but I do not support this petition. It is far too narrow, far too obviously selfish. What we need is to separate out the environment/pollution tax and the road and transport maintenance tax into separate, distinct taxes. EVs should then be exempt from the environment/pollution tax*, but should pay the full roads maintenance tax.
We currently have two taxes of course. "Road tax", an annual tax, and fuel duty, a tax on fuel consumed, ie on mileage that also penalises big vehicles. So just hypothecate these taxes to be for road and transport costs in the first case, and to penalise/remediate pollution on the other. Problem solved.
*Yes I know some power generation pollutes and adds carbon, but that issue can be dealt with by other means.
I have to agree with most of that, I have never understood why I pay the same tax on my 4.5 tonne motorhome as a normal old small car, then I pay more for my motorbike that weighs 200kg or so than my wifes hybrid 1.5tonne toyota...absolutely bonkers. It does need re-aligning and not related to green directives.
 

garsh

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#13
Didn't I read somewhere that Tesla made a very low range car for Canada to get around tax, then you could upgrade over the air to use what was actually there?
Close.
Tesla Gets Creative For Model 3 Customers In Canada
  • Canada has a $5k rebate for EVs with a base price of $45k or less.
  • The car as configured can exceed the base price by up to $10k and still qualify for the rebate.
  • The Model 3 SR+ started at $53.7k
So, Tesla came up with a severely-battery-limited Canadian SR model with a base price of $44,999. The range is only 150km. Tesla doesn't want to sell any of these versions. But the mere existence of this version allows Canadians who order the SR+ to qualify for the rebate. To further disincentivize people from ordering the base car, Tesla has officially stated that they will NOT offer to software-unlock the battery OTA after purchase.
 
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Ian S

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#14
Everybody wants good things from the Government, including me, but I do not support this petition. It is far too narrow, far too obviously selfish. What we need is to separate out the environment/pollution tax and the road and transport maintenance tax into separate, distinct taxes. EVs should then be exempt from the environment/pollution tax*, but should pay the full roads maintenance tax.
We currently have two taxes of course. "Road tax", an annual tax, and fuel duty, a tax on fuel consumed, ie on mileage that also penalises big vehicles. So just hypothecate these taxes to be for road and transport costs in the first case, and to penalise/remediate pollution on the other. Problem solved.
*Yes I know some power generation pollutes and adds carbon, but that issue can be dealt with by other meaoplens.
I totally agree, I want to pay my dues for road maintenance etc as Ev's use the road like everyone else but the balance is wrong. It shouldn't tax Ev's on price, surely an expensive Ev is still non polluting vehicle like a cheap Ev (If there is such a thing!). I'm going from a VW golf GTD, tax £20 a year to the M3 £320 a year for 5 years! I guess the £3500 rebate offsets this but then it goes to £0.00 That cant be right. Sort it out people!