The Victorian electric vehicle tax has been deemed unconstitutional by the High Court in a landmark ruling finding it to be an excise, meaning only Federal Government has the power to impose it.

The tax required drivers to pay over 2c per kilometre driven annually, costing Victorian EV drivers $3.9 million in the last financial year.

3AW’s Heidi Murphy says another way to charge electric vehicle owners will need to be decided.

Press PLAY to hear more about the landmark ruling