Victorian Treasurer Tim Pallas has revealed the government received advice that it needs to repay the electric vehicle tax paid by drivers, plus interest.
Under the tax, drivers of electric and hydrogen vehicles pay 2.6 cents for every kilometre they drive.
The tax is designed to replace the fuel excise of 44.2 cents a litre that regular drivers pay.
This is following a High Court decision which ruled the state’s EV tax as invalid.
It is not currently known how much this repayment will cost Victorian taxpayers.