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Car tax changes: New pay per mile scheme could see consumer charges 'go through the roof'


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. ....

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Car tax changes: Pay per mile fees for electric cars 'doesn't make sense'


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“Whereas they get a lot of gain from doing incentives and that s actually what we’re seeing more of in terms of consultations.”
The Department for Transport (DfT) said the Government was committed to achieving net-zero emissions by 2050 and the transition to electric vehicles.
However, they confirmed revenue from motoring taxes must “keep pace” with any changes on the road.
They confirmed any changes to car tax rates would be considered by the Chancellor and announced in due course.
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Ms Howarth added she “can’t say” electric cars would never be taxed but said the Government’s commitment to electric cars would be a barrier to extra costs. ....

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Car tax changes: Pay per mile rule may see drivers buy electric cars 'earlier than planned


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. ....

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Car tax changes: New pay per mile scheme could see families charged £7,000 extra to drive


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Speaking exclusively to Express.co.uk, Howard Cox said: “At a reported 75p per mile, will cost a family petrol car driver an eye-gouging £6,500 more than they annually pay now in Fuel Duty and VAT (this does not include VED changes).”
The Treasury is considering a new pay per mile system to help fill a £40billion gap in public finances caused by the switch to electric cars.
The Government will lose revenue generated by VED and fuel duty which is not paid by electric cars.
When asked about a possible introduction of a pay per mile scheme, the Department for Transport said they will “ensure” motoring taxes keeps pace with changes on the road. ....

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