Harrow said..AUS1111 said..
If the government offers a $3000 subsidy for every EV, and this increases sales of EVs by 10%, how much is it costing the taxpayer for each additional EV?
Are you suggesting this as the incremental subsidy cost of the additional 10% of EV sales... $3,000 * 1.1/0.1 = $33,000 ?
Although, if it only boosted sales by 1%, you'd get this... $3,000 * 1.01/0.1 = $303,000 !
Spot on. To put it another way, we can sell 10,000 EVs at $0 cost to the taxpayer, or we can sell 11,000 EVs at a cost of $33,000,000.
So are EV subsidies best use of taxpayer funds to reduce carbon emmissions, or an extremely inefficient feel-good populist vote-winner?
Mr Milk, I don't understand how the GST component is relevant?