In France, motorists contribute to the financing of infrastructure and public aid in various ways: cost of the registration certificate, tolls, fuel taxes and even fines for speeding. Although registration fees still apply to electric vehicles, electric vehicle customers also avoid fuel taxes and benefit from incentive programs so far.
Several countries are already considering tax breaks for electric vehicles. The UK recently reduced its incentive scheme for electric motorcycle models over £10. Conversely, Italy has strengthened its commitment to an electric future by distributing 000 million euros in tax breaks to electric vehicle customers from 650 to 2022.
While these two divergent policies are not indicative of Europe's multifaceted approach to the impending electric revolution, Switzerland's proposed electric vehicle tax sends a clear message. Unable to collect fuel taxes on electric cars, motorcycles and scooters, the Swiss Federal Council has instructed the Federal Department of the Environment, Transport, Energy and Communication (DETEC) and the Federal Department of Finance (DFF) to propose new measures by the end of 2023 to review automobile taxation.
Of course, any proposal will take time to refine, but the Federal Council aims to implement a tax on electric vehicles by 2030, at the latest. Under the plan, electric vehicle owners would pay taxes proportional to their mileage. This approach seems difficult to regulate without sacrificing owner privacy or relying on self-reported numbers.
However, since most electric vehicle users charge their vehicles at home, imposing a tax on electricity presents its own hurdles. Taxing a vehicle based on its use may also be the fairest method for governments to finance infrastructure projects.
The Swiss case obviously leads us to ask ourselves the question of automobile taxation in France. Remember that the TICPE alone is the fourth revenue of the State behind income taxes, corporate taxes and VAT. The French government will therefore also have to think in the long term about an alternative solution when fuel consumption drops in favor of electric cars.
