Electric-car shift drains fuel taxes in some countries [FOX Business Network]
Tesla, Inc. (TSLA)
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Source: FOX Business Network
Governments around the world have long encouraged motorists to buy electric cars . Now they are starting to grapple with a consequence of the green drive: dwindling income from fuel taxes. Several countries have sought to phase out gasoline and diesel cars by offering tax and other incentives to drivers who buy new electric vehicles, part of broader efforts to cut carbon emissions. But in places where more EVs are hitting the road, income from fuel tax, which often accounts for a significant chunk of public revenue, is falling. In Norway, home to the world's highest electric-vehicle uptake rate, lawmakers have scrapped tax breaks on electric cars as they try to plug a hole in tax revenue. In the U.K., where fuel taxes account for some 7% of annual income, lawmakers are studying a potential new levy based on how much people drive instead. Volvo Cars presents the company's new electric car model, Volvo C40 Recharge, in Stockholm, Sweden, on March 2, 2021. (Claudio Bresciani/TT Ne
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