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Should it be a refund (instead of a tax break)?

I'm leaning towards the refund since it effectively gives everyone the "same final price"



Not for the goal in the UK. The UK doesn't have a tax break for buying electric cars as regular people at home, it's for companies. The important tax break more specifically is around providing them to workers under what's called a "salary sacrifice" scheme where you forgo some of your income in return for a benefit in kind. The BIK rate for EVs is very low, meaning they're almost tax free. This is targeting people who get new cars under hire agreements, drive them for a few years then get a new one - the goal is to increase the second hand market.

also

> its the sane in britain - if you earn $200,000 income-tax-free means 50% off, but if you earn $20,000. it means like 5% off

For SS schemes the person earning £20k would be paying a marginal rate of 32%. Most people earning more than this have a marginal rate of 42%, then frankly the figures get complicated to explain but it's a very small minority of people that hit those levels.


> *"The UK doesn't have a tax break for buying electric cars as regular people at home"

Not exactly true. Besides company car tax (BIK) benefits, electric vehicles are exempt from vehicle excise duty, which can save up to £4000 over the first 5 years of vehicle ownership. They are also exempt from congestion charges, low emission zone charges, etc, which can save thousands more. There's also no fuel duty on charging an EV, you only pay 5% VAT on electricity if charging at home, many local councils offer discounted parking and/or charging, and there is a grant available that pays 75% of the cost of installing a home charger.


Probably, but this is Australia we are talking about. It's a literal boomer welfare state.

Ok maybe a little bit of hyperbole but not that far off the mark, fiscal policy in Australia is dominated by preferential treatment for the boomer generations finances.

Ideally we would provide incentives in the form of a refund for all vehicles below a net carbon value per km (so including plugin hybrids, etc) that are priced below a given value, say $40k AUD or something, whatever is actually affordable mid-range car (not sure about specific numbers).

The idea is that hybrids are probably going to be at a disadvantage unless they are insanely efficient, BEVs will need to bring prices down to qualify for the incentive and generally speaking we end up with drastically more efficient -and- cheaper cars as a result.

However it's also not a great look if all the boomers are buying 911s instead of Model S/X etc so may as well drop the luxury car tax for full BEV vehicles so gas guzzlers are at a disadvantage across the spectrum.


In Norway we simply removed all taxes from battery EVs. Last year 80% of new cars sold were pure EVs. The plan is to ban new ICE car sales in 2025 but the law has not been passed yet as far as I know. But because the market is already so dominated by BEVs there is probably no need to rush.




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