Source: Australian Tax Forum Journal Article
Published Date: 1 Feb 2017
This article revisits the Australian Tax Forum research article, Will cars go green in the ACT? (2015). The Australian Capital Territory was the first jurisdiction in Australia to reform its vehicle purchase tax/duty on the basis of new vehicles' environmental performance, in what was known as the Green Vehicle Duty Scheme (GVDS). The analysis of that tax instrument in 2015 concluded that it was not environmentally effective in influencing car purchasing trends towards lower CO2-emitting vehicles. A later reform of the GVDS, reflecting the federal government's Green Vehicle Guide, replaces the GVDS with a new instrument, the Vehicle Emission Reduction Scheme (VERS), which commenced on 29 June 2015.1
This article considers whether the VERS instrument might usefully be adopted by other state and territory governments to improve fuel efficiency and reduce CO2 emission from light vehicles. It concludes that the tax design and price signal reforms set out in the VERS do not promote environmental performance better than its predecessor GVDS.
More by Anna Mortimore
A road test of the luxury car tax concession: will it influence demand for low-carbon vehicles? - Journal 01 Apr 2019
Will cars go green in the ACT? A case study of the reformed vehicle stamp duty - Journal 01 Mar 2015
Reforming vehicle taxes on new car purchases can reduce road transport emissions - Ex post evidence - Journal 01 May 2014
What now for environmental sustainability? Government fails to link the Australian car FBT concession to vehicle emissions - Journal 01 Sep 2011
Sorry, this is subscriber only content.
To gain access to this material and much more - Subscribe Now.
(Note: Members can access Taxation in Australia journal articles without a Tax Knowledge Exchange subscription - please log in to access).
Already a Subscriber? Login now
Already a Subscriber? Login now
Details
The material is copyright. Apart any fair dealing for the purpose of private study, research criticism or review, as permitted under the copyright Act, no part may be reproduced by any process without written permission from The Tax Institute.
Unless expressly stated, opinions are not that of The Tax Institute, which accepts no responsibility for the accuracy of any of the information contained within it.
The Tax Institute
(ABN 45 008 392 372 (PRV14016))
("TTI")
The Tax Institute is a Recognised Tax Agent Association (RTAA) under the Tax Agent Services Regulations 2009.
All materials provided on this site are protected by copyright and are owned by or licensed to TTI.
Except as expressly permitted by TTI or the copyright owner, any person or company who uses this site must not use, reproduce, redistribute, retransmit, publish or otherwise transfer, or commercially exploit, the materials or any information, software or other content, in whole or in part, which is available through this site.
Tags