Owners of electric cars will have to pay road tax on them from next year.
Zero emissions vehicles are currently not charged for vehicle tax. But from April 2020, there will be a charge of £14.
Announcing the move in Tynwald this month, Infrastructure Minister Ray Harmer said the charge was needed as duty from petrol and diesel vehicles would rapidly decrease over the next 10 years.
But the Isle of Man Green Party has described the move as a ’retrograde step’.
There are currently 309 electric vehicles registered in the island, Tynwald heard.
The Department of Infrastructure is aiming for there to be at least 10,000 electric vehicles here by 2030.
A ban on the sale of new petrol and diesel cars is to come in by 2040 as part of the government’s goal to reach net-zero carbon emissions by 2050.
In Tynwald, Mr Harmer was asked if zero to low road tax is actually incentivising people to buy electric vehicles.
He replied: ’The jury is out. I do think, generally, having electric vehicles at a lower rate will incentivise.
’There is a debate on whether we should have zero vehicle duty for electrical or whether there should be a nominal charge. The department’s view is effectively it should be small.’
A Vehicle Duty Order setting out the new charging regime will be brought to the February Tynwald.
Manx Utilities chairman Dr Alex Allinson suggested the use of public subsidies and tax rebates will become unnecessary in the future as electric cars become more affordable.
Mr Harmer agreed that any discount should be short-lived. ’Vehicles are improving, they are becoming cheaper,’ he said.
’Whilst a zero rate seems good, and is very much something I support, I do understand some concerns that people have that it is not fair because there is an administrative charge.
’At some point - and this will come out very much as we move to electric vehicles - the vehicle duty, the amount that you actually obtain from vehicle duty due to emissions will rapidly decrease over the next 10 years.’
He added: ’Ultimately we do need a self-sustaining scheme, and a self-sustaining scheme that actually raises the money.’ Bill Shimmins (Middle) asked what the administration cost is of processing an individual vehicle tax was.
’Is it possible that this could actually be higher than the £14 he is proposing, and it might actually be financially better to leave it at zero for a while?’ he said.
Mr Harmer said: ’The main thing for vehicle duty is if we raise less in vehicle duty we have less money to spend on roads. It is really as simple as that.’
Andrew Langan-Newton of the Green Party in the island said removing the incentives before many people owned electric vehicles was ’a retrograde step’.
He also called for the government to introduce a grant or loan scheme to assist lower earners in having access to electric vehicles.
Manx Utilities announced in the summer that it will be levying a fee to charge electric vehicles.
A procurement process to enable payments is being finalised at its 24 charging points around the island.

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