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Push for major overhaul of road tax system

Neil Mitchell
Article image for Push for major overhaul of road tax system

There’s a push to abolish car registration fees and the fuel excise charge in Victoria.

But don’t get too excited.

They’d be replaced with a “user pays” system for taxing road users.

Under the proposal from the Institute for Sensible Transport, drivers would pay a fee for each kilometre they drive.

“If you drive more, you pay more,” Dr Elliot Fishman, Director of Transport Innovation at the institute, told Neil Mitchell.

“If you drive less, you pay less.”

He said it would “future proof” the system, given electric cars negate the need for a fuel excise tax.

But it raises other issues, including for those who live in the country.

Click PLAY below to hear more about it

Picture by Getty iStock

Neil Mitchell
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