The Green Lane: What does the Tax per Mile mean for EV Drivers?

Jeremy Taylor finds out what the government’s plans for a new tax per mile system will mean for EV drivers

The Green Lane: What does the Tax per Mile mean for EV Drivers?

Electric car owners are being warned of the possible impact of a new tax per mile system likely to be implemented by the government before 2030.

The proposals could see also town drivers subjected to a double taxation, forced to pay a national road charge combined with Clean Air Zone fee – such as the ULEZ in London.

A new pay-as-you-go taxation would see the government generate revenue from the owners of private cars based upon how much they drive on public roads.

The introduction of this comes as a result of phasing out petrol and diesel cars by 2030. Currently, a percentage of every litre of fuel sold in the UK goes to the government and the pay per mile scheme would hope to recoup this loss.

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This would mean that for each mile drivers travel they will be charged a fee, potentially going to be monitored by using a tracking system similar to a black box.

Although the introduction of electric vehicles appears to be a force for good in terms of environmental preservation, motorists should expect some form of road pricing before 2030.

Replacing fuel duty and vehicle excise duty is no easy task, so proposals for tax per mile have come as the most logical taxation method. The new taxation proposition has come under some criticism as, on the surface, it appears to have a negative impact on rural drivers.

Those who live in cities and built-up areas may have a financial advantage over those who live further away from amenities. It has also been criticised by those who drive electric vehicles as they believe they should be exempt from the scheme.

A spokesperson for LeaseElectricCar.co.uk told Green Lane: “It has become clear that at some point drivers will have to be accustomed to a new way of being taxed. With the sale of petrol and diesel estimated to cease by 2030, the Government will have to generate revenue in ways such as pay-per-mile.

“As with many new motoring introductions, there can be frustration from drivers that the new rules are unfair. It is likely that there will be a number of schemes to help those who are physically or geographically disadvantaged, otherwise, there could be a massive outcry.”

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