Any government needs to raise funds to cover the cost of what it does. In many cases part of this is raised by a tax on energy consumption. They may offer discounts to create a temporary competitive advantage and attract people to alternative fuels while a market is established/reaches critical mass however at the end of the day they have a tax target to reach. Politics and sector lead pressure groups will impact on deciding where these discounts are offered and for how long they remain in place.
It is only to be expected that a new way of calculating tax on fuel will follow any change in fuel source. Figuring this out is going to be a bigger issue for countries that unlike Australia charge high levels of tax on energy consumption.
The current tax on fuel is equitable as it is directly connected to miles travelled and the amount of fuel used. The user can make decisions to pay more or less tax based on distance driven and economy of the vehicle selected. Drive more miles use more fuel pay more tax.



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