The High Court has overruled Victoria's road user charge, but could EV drivers still be taxed?

The controversial road user charge — where EV drivers paid the state around two cents a kilometre — was challenged in the High Court by two Victorian electric car owners who argued the tax was not legal as it was an excise that only a federal government can impose.The Victorian government said it was disappointed with the outcome but accepted the court's ruling.One of the plaintiffs in the case Chris Vanderstock said he hoped he would receive a refund for the levy.

The Victorian government introduced the levy in 2021 as a way to raise revenue for roads and EV charging infrastructure."At the moment, the Commonwealth controls the revenue from driving because it is responsible for the fuel excise, but over the longer term that will decline, as cars become more and more fuel efficient and as people gradually switch to electric vehicles," transport expert Marion Terrill told 7.30.

"The way that the drivers have been arguing this is that they should be encouraged rather than penalised for their choice of car …That's all true, but electric vehicles have got downsides as well. Ms Terrill advocates for "congestion pricing", which is used in cities like London and Singapore to help resolve city gridlock.

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