Tesla’s CEO Elon Musk urged the UK government to increase taxes on petrol and diesel cars. And use the proceeds to fund larger subsidies for electric vehicles.
The leading electric car pioneer, Elon Musk is calling on the UK government to increase taxes on fuel so that the additional fund that will be generated can be used to incentivize the electric vehicle industry. The petition will translate to an additional cost for the new petrol or diesel car, and consequently making electric cars cheaper.
UK government to increase taxes to support electric car industry
Supporting the drive for zero-emissions vehicles without any significant additional cost for the government can be done. Letting fossil-fueled cars pay more can help the government generate additional income that can be used to push environmentally-friendly EVs. This would be reasonable and logical enough considering the environmental damage fossil-fueled cars can contribute. This will result in a revenue-neutral for the government as it continues to endorse sustainable alternatives.
Many environmentalists believe that taxing higher on fossil-fueled cars can be a strategic way to address the worsening climate crisis. However, governments are fearful of a potential political backlash that can happen as a consequence. Just like what happened with the ‘Gilets Jaunes’ (yellow vest) movement who protested the government. The movement started protesting the government against the intent to raise tax on diesel and petrol over 2 years ago.
In the UK, the Conservative government has never increased fuel tax for 11 years already. Because of this, it costs the government more than £50 billion in a form of subsidy.
Elon Musk has pioneered the mass production of electric vehicles in order to address the carbon emissions problem caused by transportation. Musk was criticized by some environmentalists for buying bitcoin worth $1.5 billion. Apparently, there were reports saying that the cryptocurrency uses so much energy, making it not environmentally friendly.
Tesla supports total banning of fossil fueled and hybrid cars
Tesla’s opinion on banning fossil-fueled cars is like declaring war against rivals in the car industry. Many of them participated in lobbying intensely against the government’s plan to ban all petrol and diesel cars including hybrids. Part of the government’s plan is for carmakers to stop producing fossil-fueled cars by 2030. The government further said that hybrids will only be allowed until 2035.
It seems that Tesla was the only carmaker who is transparently supporting the idea of a total ban on all petrol and diesel cars including hybrids. The UK government is planning to do this as part of its commitment to tackling the climate crisis.
Tesla further proposes that the UK government should enforce the automakers to sell a certain proportion of electric cars. Other proposals include incentivizing people to shift on Electric cars, giving tax breaks for the corporate car users, and increasing charging stations.
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