Tesla Lobbies UK Govt to Boost Subsidies for EVs by Raising Taxes on Gas & Diesel Vehicles

Tesla Lobbies UK Govt to Boost Subsidies for EVs by Raising Taxes on Gas & Diesel Vehicles

Tesla is advocating for the interests of electric vehicle owners in the UK, which should bring the country closer to meeting its carbon footprint goals. The company is lobbying the government to raise taxes on gasoline and diesel cars to fund larger subsidies for electric vehicles, as well as ban hybrids from 2032.

Tesla has called for a higher fuel duty and levy on purchases of gasoline and diesel vehicles to pay for subsidies and tax breaks such as VAT exemption for battery-powered vehicles, according to government statements, the Guardian reported. The proposal would theoretically add thousands of pounds to the purchase of new gasoline or diesel vehicles, resulting in cheaper and more profitable EVs.

“Supporting zero-emissions vehicle uptake via mechanisms to make new fossil-fueled cars pay for the damage they cause is entirely reasonable and logical,” Tesla wrote in a submission in July last year. "The result can be a revenue-neutral system for the government."

While environmentalists view raising taxes on fossil fuels as a key element in the fight against the climate crisis, the government fears a political backlash. However, it should be borne in mind that only the widespread adoption of electric vehicles can have a significant impact on the achievement of goals for reducing air pollution with CO2.

Tesla is currently in tense conflict with rivals in the auto industry, which have been actively lobbying for government proposals to ban all gasoline and diesel vehicles, including hybrids, by 2030. As a result of their active actions, in November 2020 the government announced that sales of hybrids would be allowed until 2035.

Tesla was the only car manufacturer to advocate for a complete ban on all gasoline and diesel vehicles, including a ban on hybrids that combine batteries with an internal combustion engine from 2032. This target is in line with those of the UK Climate Change Committee, which also stated that hybrid vehicles should be banned in 2032.

Tesla argued that £3,000 grants for new electric cars could be “revenue-neutral” at about £49 per petrol or diesel car sold in 2019. However, that would have to rise to about £750 per petrol or diesel car once the electric car market share reached 20%.

Tesla also called for car manufacturers to sell a certain percentage of their vehicles with zero emissions—a “zero-emissions mandate.” Other proposals included governments paying people to ditch old, polluting cars, tax breaks for corporate car users, and a promise to install charging stations on any street in the UK upon request.


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Article edited by @SmokeyShorts, you can follow him on Twitter

About the Author

Eva Fox

Eva Fox

Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.

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