Excuted tax on gasoline and diesel is generally higher in the European Union than for electricity. This difference creates the question: Who pays a failure of income to the budget if more drivers are forced to switch to electric vehicles?
EU income from excise taxes and cells
EU income from excise tax and cells is an important part of the budget. In 2021, a total of $ 140 billion in the EU received collected excise taxes in the EU. Of this, a large part of this comes from fuel, which represents about 10 % of Member State tax revenues. Excuted fuel and duties are thus an irreplaceable source of finance for the EU and individual countries. Once a more massive increase in electric vehicles occurs, it will be necessary to look for alternative ways to replace this outage.
Electricity and Consumer Tax
Electricity consumer tax used for car drives is generally zero or very low in the EU. However, some countries are already starting to introduce special taxes or charges for electric vehicles, for example for using road infrastructure. The transition to electromobility is a great challenge for the EU, as a failure of income from traditional sources will have to be compensated somehow. The Union is not too open about this problem, but different options are already discussed and their introduction is likely. Possible EU Strategies
Taxation of electricity for charging electric vehicles
One of the most discussed measures is the introduction of an electricity tax used to recharge electric vehicles. This would ensure that even electric vehicles would contribute to the state budget. Electric cars are generally heavier than cars with internal combustion engines, which means greater road wear. It is expected to introduce fees for the use of roads based on kilometers, similar to trucks. The tax system reform possible measures include changes in vehicle ownership or introduction of new environmental taxes.
Why did this happen? The European Union has decided to speed up the transition to electromobility because it is a key part of its strategy to reduce emissions of glass gases. He considers the outage of excise taxes as a secondary problem that will be solved gradually.
EU competitiveness and subsidy for electromobility
The EU massively supports the transition to electric cars with subsidies. However, it does not have a clear strategy to avoid new economic risks, especially dependence on China, or how to solve the outage of excise duty. The dependence on Chinese suppliers Chinese company offers cheaper components thanks to lower costs and strong state support. Europe does not have sufficient production capacities for batteries and other key components. Supplier chains are strongly linked to China and the EU will not get out of this dependence. The EU invests in electromobility, but these investments are supported by the Chinese industry. This situation threatens the competitiveness of European companies and increases the risk of strategic dependence on China.
Energy security and strategic autonomy
The EU wants to reduce its dependence on fossil fuels, but instead creates a new addiction to China. The situation is complicated and requires a thoughtful approach so that European money does not end directly or indirectly in the Chinese economy.
Kristián Hejduk Kristián Hejduk is an expert with rich education and experience. He graduated from two universities of economic focus and fluent two languages. During his career he spent a professional internship in the US, where he expanded his knowledge and practical skills. He currently works as an external economic advisor to international companies, combining his theoretical knowledge with practice in the global environment.
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