High taxes stymie switch to EVs

Eskom’s 50% electricity surplus means that a move to electric vehicles (EVs) in the road freight sector is highly achievable, according to energy expert Ted Blom. “On paper, Eskom has a 15 gigawatt surplus – and if they handled operations such as maintenance properly and removed issues of poor governance and corruption, the extra electricity could go towards fuelling electric vehicles.” However, he told FTW that despite the ongoing and significant increases in the price of petrol, government was not making any moves to facilitate the change to EVs. “We already know that electric vehicles have more favourable features as their engines are more efficient and they require much lower running and maintenance costs,” said Blom. “But while the use of electric vehicles is a feasible avenue for South Africa’s freight transport industry, several interventions are needed by government to make it easier and less costly for operators to make the switch.” He pointed out that the largest obstacle to increasing the use of EVs in the country was the issue of tax. Electric vehicle imports were taxed to death with importers penalised over 30% in additional taxes, he said. “Import duties on electric vehicles should be lowered and are only kept in place to protect fossil fuel vehicles,” added Blom. “If only this change was made, local industry would be able to change to electric immediately.” He noted that investments would need to be made in infrastructure, such as the identification and conversion of fuel refuelling pumps, and that government needed to incentivise the changeover to EVs. A recent report by the World Economic Forum stated that now was the perfect time for sub-Saharan African to explore the potential of EVs but that rapid adoption would require strong enabling policies such as tax incentives and subsidies.