Pay-per-mile car tax changes are the 'way forward' and needed 'as soon as possible'
Pay-per-mile car taxes are said to help level the playing field for motorists
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Experts have suggested that a new pay-per-mile tax scheme should come “as soon as possible” to help alleviate pressure on the £35billion black hole left by fuel duty.
The new tax measures could be the only “way forward” to help combat the rise in electric cars which are currently taxed on a different level.
Fears around new taxes to replace the current system of Vehicle Excise Duty (VED) were sparked by the Prime Minister's speech this week.
Keir Starmer warned that Labour's first Budget, which will be announced in October, could be "painful" as the Government desperately looks to fill the £22billion public finance black hole.
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A pay-per-mile scheme could be an alternative for road chargingPASimon Williams, head of road policy at the RAC said: “As more and more EVs come on to the roads the Government will need to tax drivers differently.
"We think replacing fuel duty with a pay-per-mile system as soon as possible is the way forward as then the only tax levied on fuel would be VAT. This would give retailers nowhere to hide.”
Under the current tax measures, petrol and diesel drivers are charged based on the emissions output of their vehicles, with higher polluting cars paying more.
As the UK looks to move to more eco-friendly forms of travel, especially if it wants to meet its ambitious 2035 net zero goals, electric cars will need to pay their fair share.
From April next year, electric cars will be subject to VED charges, but experts have warned this is not soon enough. A pay-per-mile tax could close the gap between how much drivers are taxed while also levelling the playing field.
The proposed tax scheme would charge motorists for every mile they drive instead of based on the emissions output of their cars.
Although experts have stated this could be the fairer option, drivers do not agree. Taking to social media, one person shared: “Another consequence of the anticipated ban on petrol and diesel cars.
“How do you replace the biggest cash cow (fuel tax)? Pay-per-mile and a substantial increase on taxation of electricity!! Welcome to the green deal!”
Another concerned driver shared: “Absolute joke of a proposal, they'd need to provide roads fit to drive on before thinking of pay-per-mile, and we already pay-per-mile in the fuel tax on petrol and diesel.”
Meanwhile, someone else warned that the proposed taxes would “put the cost of everything up”, adding that businesses would need to "recoup their extra costs".
Another point raised by drivers was the cost disparity between rural motorists and urban ones, who would naturally be paying less to travel.
Nick Zapolski, founder of ChooseMyCar explained that drivers in rural areas, where driving is often the only viable means of transport, “stand to lose the most”.
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Drivers in rural areas would likely pay more under the tax measure
GETTYHe said: “These individuals typically have longer commutes and fewer public transport options, meaning the tax could disproportionately affect their budgets.”