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The Chancellor is said to be considering a pay per mile scheme (Image: Getty)
He warned consumer costs could rocket under the updates as he demanded clarity from the Government on any updates.
He said: “Over the coming months and years, people will be making car-buying decisions that will be affected when whichever new tax or taxes are introduced to plug the gap lost from Fuel Duty, Vehicle Excise Duty and VAT.
“I’d now like to ask the Government to outline what approach it will be taking with regards to electric vehicle taxation given how quickly EV ownership has progressed in the last few years, and how quickly it will continue to evolve.
| UPDATED: 15:01, Mon, Feb 22, 2021
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Highly polluting petrol and diesel cars will be charged to use roads in the city centre from 1 June with owners of affected cars set to pay up to £9 per day. With just a few months until the new updates are launched, these are the most important things to keep an eye on.
Experts have warned electric car users cannot be exempt forever (Image: Getty)
They said as they move forward with the transition, it was vital to ensure revenue from motoring taxes keeps pace with change.
The DfT added any updates to the tax system will be considered by the Chancellor with any further steps announced in due course.
Motoring lawyer Nick Freeman has also claimed it was inevitable electric car owners would be chargers tax.
He said electric car drivers were “blind and deluded” if they thought they could escape tax charges forever.
Mr Freeman said: The moment everybody is in electric cars or the majority are in electric cars they are going to be taxed because the government needs to use the revenue.