Israel plans electric vehicle tax after calculating revenue loss

Israel is planning to impose a special tax on electric vehicles (EVs) after calculating the financial hit to state coffers from lost fuel tax revenue.

The Israel government’s official stance on EVs is similar to other globalist governments in that electric vehicles are an integral component of an environmental utopia.

According to Israel’s Ministry of Energy and Infrastructure, fuel vehicles have “very negative consequences from an environmental point of view, due to Greenhouse Gas Emissions and various pollutants; from an economic point of view, since oil prices have been subject to notable volatility; and from a geopolitical point of view, since most of the gasoline is produced in countries contributing to political instability.”

The solution to all these challenges is the electric vehicle, which the ministry says “is the next step”. 

But a report published last week by the Finance Ministry’s Chief Economist Division shows that in practicum, Israel’s government is not as enthused about EVs as it purports to be.

For each EV with an average travel distance of 16,000 kilometers, the government loses about $845 (NIS 3,100) per year. If the government pursues its globalist agenda for 2030 and puts a million EVs on the roads, the state stands to lose approximately $818 million (NIS 3 billion) annually — about 0.5% of state revenue.

Therefore, the Finance Ministry is considering a travel tax of $0.041 (NIS 0.15) per kilometer for EVs, though the cost may actually be higher, according to Globes. With an average annual travel distance of 16,000 kilometers, EV drivers could expect to pay an extra $656 (NIS 2,400) per year. 

Another reason for this tax, according to the Finance Ministry, is that EVs are likely to increase traffic congestion due to their ability to travel longer distances. The report did not address the fact that this ability is significantly hampered in extreme weather, which often characterizes Israel’s climate.

Finally, another concern listed in the report is that EVs are harmful to the environment, given that electricity production requirements for EVs are responsible for greenhouse gas emissions.

But Israel is not the only government to realize the harsh economic cost of EV messianism.

Several US states are now imposing additional registration fees on EV owners. These states have pushed for “sustainable” and “environmentally friendly” alternatives but are now losing millions of dollars in gasoline taxes. Illinois Democrats, for instance, proposed charging EV owners a $1,000 annual registration fee to recoup the loss in gas taxes. After intense backlash, however, the Prairie State settled on charging EV owners a $251 annual registration fee, $100 more than their ICE (internal combustion engine) counterparts.

At least 19 states have imposed an extra annual registration fee for EVs ranging from $50 to $235, with Blue states such as Michigan and Georgia at the higher end.

In the United States electric vehicles (EVs) are now generally more expensive to drive than gas-powered internal combustion engine (ICE) vehicles, according to a study published last month.

While upfront purchase costs may vary, the study found that “[t]ypical mid-priced ICE car drivers paid about $11.29 to fuel their vehicles for 100 miles of driving. . . . That cost was around $0.31 cheaper than the amount paid by mid-priced EV drivers charging mostly at home, and over $3 less than the cost borne by comparable EV drivers charging commercially.”

The cost difference becomes even more stark when factoring in EV drivers who need to recharge frequently at charging stations at an estimated cost of $14.40 per 100 miles.