Auto industry group calls for scrapping US gas tax, adopting vehicle fee - reuters.com

An auto industry group is calling for the federal government to eliminate the gasoline tax and replace it with a vehicle-based fee system. The proposal reflects industry concerns about how fuel taxes—currently the primary funding mechanism for highway infrastructure—fail to capture revenue from electric vehicles and hybrid cars that consume less or no gas. Shifting to a vehicle fee would ensure automakers' products contribute to road funding regardless of fuel consumption, aligning with the industry's push toward electrification. The timing suggests the auto sector is seeking a revenue solution that won't penalize EV adoption as it transitions away from internal combustion engines. Such a tax restructuring would require congressional action and would affect how the federal government funds transportation infrastructure nationwide.