World's 'Worst EV Policy' Scrapped In Tesla's Promising Playground

The Australian High Court has ruled against the state of Victoria’s taxes on hydrogen and plug-in hybrid vehicle owners — known as Zero and Low-Emission Vehicles (ZLEVs) — often called the “worst EV policy in the world,” stating that only the federal government can impose excise duties. 

What Happened: The tax was implemented in 2021, charging up to 2.8 cents for every kilometer traveled in an EV, according to a report by the Australian Associated Press.

"The ZLEV charge is, as its name suggests, a tax on ZLEVs. For that reason, it is a duty of excise," the court said, as per the report.

Why It Matters: This decision could be a positive move for encouraging EV adoption in Australia, where EVs represented only 8% of new car sales in September.

Tesla Inc TSLA sells only the Model 3 and the Model Y in Australia but has seen such monumental demand that it nearly sold out its inventory back in June.

Other popular EV makers Down Under include BYD Co Ltd BYDDY BYDDF, Hyundai Motor HYMTF, and Kia KIMTF, among others.

It is also expected to deter other Australian states, such as New South Wales and Western Australia, from introducing similar taxes.

Meanwhile, in the U.S., the Biden administration continues to push toward mass EV adoption with incentives and subsidies. Consumers buying EVs in the U.S. can qualify for a tax credit of up to $7,500 under the Inflation Reduction Act, on qualifying certain conditions.

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