Electric Vehicle Taxes Increase
Annual Taxes of $220 Imposed
Due to Road Damage
Promoting electric vehicles is part of an environmental policy to reduce greenhouse gas emissions.
In Korea, government subsidies, local government subsidies, tax benefits, etc., are also being utilized to increase the distribution of electric and hydrogen vehicles. Major countries like Europe and the United States are also encouraging vehicle purchases through support policies, but recent cases contradict these policy directions.
This happened in Canada, where the problem of road damage due to heavy electric vehicles has become severe. It was announced that an annual tax of about $220 would be imposed on vehicle owners. If this tax is added, it is expected to secure a yearly tax revenue of about $1.1 million.
Electric vehicles, 880 pounds heavier, lead to road damage
As the share of electric vehicles increases, the tax collected will gradually increase. The tax of about $1.1 million annually is expected to rise to about $8.8 million by 2026. Electric vehicles are 660-880 pounds heavier than equivalent internal combustion models. The Genesis G80 electric model weighs 4,993 pounds, 959 pounds heavier than the 4,034-pound internal combustion model.
The issue of weight cannot be ignored in Korea as well. The government plans to raise the sales share of eco-friendly vehicles, such as electric and hydrogen vehicles, to 83% by 2030. As electric vehicle distribution gradually increases, road and bridge damage due to aging also occurs. There have been suggestions that the tax system must also be restructured in Korea.
Electric vehicles do not pay gas taxes
They do not contribute to road maintenance costs
The $200 (about $220) that electric vehicle owners in Canada will be charged is similar to the fuel tax charged to internal combustion vehicles. It collects the fuel tax not paid by electric vehicle owners under a different name. In Korea, drivers also pay taxes when they fill up with gas. Gasoline and diesel include transportation, energy, and environmental taxes.
The tax collected in this way is about $13 billion annually, and 80% of the tax is allocated to the transportation facility special account budget, which is used to maintain and establish roads, railways, and airports. On the other hand, electric vehicle owners who do not fuel up do not pay fuel tax, making it difficult to avoid criticism that drivers of internal combustion vehicles bear the cost of maintaining road infrastructure.
Will Korea also impose taxes?
Could impact the electric vehicle propagation policy
In Korea, if internal combustion vehicles are replaced with hydrogen or electric vehicles in the future, securing the taxes needed for road maintenance could also be difficult. However, it is difficult to make a hasty decision. If consumers turn away from electric vehicles due to excessive taxation, a disadvantage of low maintenance costs, it may cause problems in the government’s electric vehicle propagation plan.
There are additional problems caused by the weight of electric vehicles. In the UK, there have been cases where public parking lots have collapsed due to heavy electric vehicles. Tower-type parking lots in Korea are not optimized to withstand heavy weights, so there are concerns about collapse. The tire wear caused by heavyweight also produces fine dust. Given the various problems raised by the weight of electric vehicles, it seems necessary to prepare countermeasures.
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