Automated translation by Reuters using machine learning and AI, please refer to the following warning: https://bit.ly/rtrsauto
(Additional details, context, comments from the group in paragraphs 3 to 10)
By David Shepardson
The head of a group representing nearly all major automakers called on Wednesday for the abandonment of the 18.4 cents per gallon gasoline tax and its replacement with a vehicle tax to fund road repairs.
John Bozzella, who leads the Alliance for Automotive Innovation representing General Motors
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, Toyota
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, Volkswagen
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, Hyundai
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, and other major automakers, said in a proposal reported for the first time by Reuters that the government should address the growing financial deficit of the special highway fund by imposing a single tax on each vehicle based on its weight.
Congress has not raised the federal gasoline tax since 1993, and as more Americans drive EVs and fuel-efficient vehicles, gasoline tax revenue has not been sufficient to meet highway repair needs. Not indexed for inflation, the tax has lost over 60% of its value in real terms.
Bozzella stated that the tax would be perceived as a registration fee. “This policy would ensure that every vehicle on the road contributes to the maintenance of the American transportation network,” Bozzella said. “Those driving older, less fuel-efficient vehicles, or covering long distances bear the financial burden. This is not fair.”
Since 2008, over $275 billion – including $118 billion from the 2021 infrastructure law – has been diverted from the general fund to finance road repairs.
Many Republicans want to impose a tax on electric vehicles to contribute to road repair funding.
Last year, House Republicans proposed a new annual $250 tax for EVs and a $100 tax for hybrid EVs, but this measure was not included in a comprehensive tax and spending bill. The current five-year surface transportation law expires on September 30.
Some states impose fees on EVs to cover road repair costs. Some Republican senators in February 2025 proposed a $1,000 tax on EVs to cover road repair costs.
Most of the revenue for road repairs funded by the federal government comes from diesel and gasoline taxes, which EVs do not pay.
Last year, the Electrification Coalition, a group advocating for EVs, argued that a $250 tax for EVs was unfair, considering that an average gasoline vehicle only pays $88 per year in federal gasoline taxes.
