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Full text of the announcement, for posterity:
New first registration tax concessions for electric vehicles
The spokesman added that the new FRT regime has taken account of the environmental merits of the wider use of electric vehicles as replacements for conventional vehicles, the increasing acceptance of electric private cars by drivers, and the substantial growth of the private car fleet in the last few years, leading to worsening traffic congestion. The new FRT concessions for electric private cars can achieve a reasonable balance between promoting the use of electric private cars and stemming the excessive growth of the private car fleet.
Obviously this is going to raise the Model X and Model S prices by a lot more. In my opinion this is still fair, because there is a lot of luxury baked into the price of these cars which has been getting a free tax ride on the back of the EV waiver. I believe that this is a very fair arrangement which balances the needs of various elements of society, and continues to encourage EV adoption without leaving people who aren't in a position to afford Tesla Model S and X cars, feeling that wealthier folks are being unfairly advantaged.
If you want to decrease the fossil fleet, then increase the annual fees on existing private fossil cars or put some onerous inspection on it after the 10th year of service. Things like that will eventually reduce the resale value to the point that the fossil powered cars will be exported to another market to live out their useful life or they will be scrapped and recycled.What they should do is actually increase the FRT for non-electric private car if they really want to reduce the traffic, instead of cutting the tax incentive for EV. Afterall they are trying to move people from using fossil fuel car into clean energy car, or are they not?
It is very difficult to understand the government's logic behind this, its just total nonsense!
+What they should do is actually increase the FRT for non-electric private car if they really want to reduce the traffic, instead of cutting the tax incentive for EV. Afterall they are trying to move people from using fossil fuel car into clean energy car, or are they not?
It is very difficult to understand the government's logic behind this, its just total nonsense!
Apparently they have not defined what is not a commercial vehicle. If a Tesla can somehow be considered part of these (e.g. registered under a "car rental" company), I see a new business of helping people setting up new "car rental" companies, just like the parallel import of "preowned" cars from overseas