Electric vehicle drivers will be hit with a new pay-per-mile tax in the Budget, with a new charge of 3p per mile being levied on top of other road taxes, costing the average driver an extra £250 a year. The Telegraph has more.
Under current plans, to be announced by the Chancellor on November 26th, drivers of electric cars will be charged 3p per mile on top of other road taxes.
The scheme, set to kick in from 2028 after a consultation, will mean the average driver faces paying an extra £250 a year.
The Treasury will make the move amid falling fuel duty revenue as people move from petrol to electric cars. Up to six million people are set to be driving EVs by the time the tax comes in.
Ministers will frame the move as one of fairness, as drivers of petrol cars currently pay £600 a year on average in fuel duty.
They will also argue that it is different from traditional pay-per-mile schemes, with a fee taken each year on estimated travel and no mass electronic monitoring of movements.
But the approach opens the door for the wholesale adoption of pay-per-mile taxation for all cars, raising questions about how the scheme would be enforced.
Sir Mel Stride, the Conservative Shadow Chancellor, said: “If you own it, Labour will tax it. It would be wrong for Rachel Reeves to target commuters and car owners in this way just to help fill a black hole she has created in the public finances.
“With Labour’s cost of living crisis, now is not the time to hit hard-working families and businesses with another tax raid.”
For years, ministers and industry experts have discussed a pay-per-mile road taxation system that could be applied to all forms of cars.
While the specifics are still discussed, the Telegraph can reveal that the scheme would be aligned to the annual payment of vehicle excise duty (VED), which affects all UK motorists. EV drivers have had to pay the charge since April.
The new element is being described as ‘VED+’ and being framed as a way to get drivers of green cars to pay more each year.
EV drivers will be asked to estimate the number of miles they will drive in the year ahead and pay a fee, set in the current plan at 3p per mile.
If the owner does not drive that amount, some of the money carries over into the next year. If they drive more miles than estimated, they would top up their payment.
Worth reading in full.
Losing their road tax exemption in April and now a new tax all of their own – the perks of the early EV adopters are fast being withdrawn.
Featured image: The Telegraph
••••
The Liberty Beacon Project is now expanding at a near exponential rate, and for this we are grateful and excited! But we must also be practical. For 7 years we have not asked for any donations, and have built this project with our own funds as we grew. We are now experiencing ever increasing growing pains due to the large number of websites and projects we represent. So we have just installed donation buttons on our websites and ask that you consider this when you visit them. Nothing is too small. We thank you for all your support and your considerations … (TLB)
••••
Comment Policy: As a privately owned web site, we reserve the right to remove comments that contain spam, advertising, vulgarity, threats of violence, racism, or personal/abusive attacks on other users. This also applies to trolling, the use of more than one alias, or just intentional mischief. Enforcement of this policy is at the discretion of this websites administrators. Repeat offenders may be blocked or permanently banned without prior warning.
••••
Disclaimer: TLB websites contain copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available to our readers under the provisions of “fair use” in an effort to advance a better understanding of political, health, economic and social issues. The material on this site is distributed without profit to those who have expressed a prior interest in receiving it for research and educational purposes. If you wish to use copyrighted material for purposes other than “fair use” you must request permission from the copyright owner.
••••
Disclaimer: The information and opinions shared are for informational purposes only including, but not limited to, text, graphics, images and other material are not intended as medical advice or instruction. Nothing mentioned is intended to be a substitute for professional medical advice, diagnosis or treatment.
Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of The Liberty Beacon Project.
Leave a Reply