Fuel duty and road tax: how to replace £35 billion a year of lost revenue – Petrol and diesel cars bring in £35 billion a year through road tax and fuel duty, but EVs generate no fuel duty and are exempt from road tax

13 comments

  1. Once everyone starts driving electric they’ll find some new tax to put on them. Maybe some form of lithium tax because it has a battery made from it.

  2. I’d support pay per mile, how they do it is another matter that’s way above my pay grade.

    FWIW, I have paid road fund license for the best part of 10 years, I’ve had an EV for 2 years, and a hybrid for 7 years before that.

  4. You place an electricity meter inside the vehicle. That records how much electricity flows in and that is then charged for by submitting your meter readings. You charge more. You use more. You pay more. A pay as you go solution just as simple as a petrol tank.

    It really is not complicated. The article makes it out to be some huge mystery. The problem with the solution is that there is no profit in it. So it is absolutely not possible.

  6. Around £35 billion a year is lost to Tax Avoidance by Corporations, I see an easy way to address the balance, attack those fuckers taking from us for a change. The people whose work keeps the Country going have suffered enough thanks.

  7. The VED side will just go back to how it was I think – it didn’t used to be about emissions or environmental impact. They’ll just tax it on either, or a combination of, weight and power output.

    Or based on the P11D value, perhaps.

    They’ll use low tax to nudge people over, as they are, then they’ll increase taxes on ICE vehicles further (Especially company cars, I expect) and then implement a taxation regime on EV’s. It’ll come, and I don’t think it’s a hugely complex issue for the government to resolve.

    Replacing fuel duty is rather a lot more complex, though

  8. They will just increase taxes. I’m just wondering how this will work for people who charge at home. Given the government’s history they’ll add tax to everyone’s electricity bill to pay for “strain on the grid caused by EVs” or some bollocks.

  9. Let’s start charging a luxury VAT on excessively valuable items. For example, above £50k value a cars VAT becomes 30%. If you’re buying a phone for more than £1000 anything above that is at 30%.

  11. Road usage tax. You could use it to incentivise travel at different times and different routes to also clear up congestion. You could also tailor it so rural people forced to drive aren’t disproportionately hit, and if you implemented it tomorrow you could ring fence it for public transport investment (something the public support in polling by a large margin)

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