In this file photo dated Tuesday, Nov 9, 2021, an electric car gets charged at a supermarket carpark in Sydney, Australia. (PHOTO / AP)

SYDNEY — Australia's top court on Wednesday quashed a levy on electric vehicles (EVs) by the state of Victoria, in a case that could make it more difficult for other states to pursue similar legislation.

In 2021, Victoria introduced a levy of between A$0.02 ($0.013) and A$0.025 per km travelled in EVs, a tax that faced a wide range of opposition.

The ruling sets a precedent that will make it more difficult for other states to attempt to introduce their own levies on EVs

David Hertzberg lawyer

After a case brought by two EV owners, the High Court ruled Victoria's excise duty can only be levied by the federal government.

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The ruling sets a precedent that will make it more difficult for other states to attempt to introduce their own levies on EVs, said David Hertzberg, the lawyer for the two plaintiffs.

"It has come down to a constitutional interpretation but make no mistake, the ramifications of this will be very significant," he told state broadcaster ABC in an interview.

The states of New South Wales and Western Australia have previously announced plans to introduce similar legislation.

In 2021, an alliance of 25 car manufacturers, motorist groups, electrical companies and environmental groups published an open latter calling Victoria's legislation "the worst electric vehicle policy in the world".

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"Specifically penalizing Australian motorists for making the switch to a cleaner, less polluting transport technology never made sense," Noah Schultz-Byard, South Australian director at the Australia Institute, a public policy think tank, said after the High Court decision.