Summary
The government is considering a new tax for electric vehicle (EV) drivers to compensate for lost revenue from fuel duty, with potential changes expected in the next month's Budget. This new tax might include a pay-per-mile charge and aims to establish a fairer system for all drivers while supporting the shift to electric vehicles. The government has already removed the vehicle excise duty exemption for electric cars and plans to support the EV market with grants and other measures.
Key Facts
- The government is discussing a possible new tax on electric vehicle drivers in the upcoming Budget.
- The proposed tax could include a pay-per-mile charge, possibly 3p per mile.
- Hybrid car drivers might face a lower rate of this charge.
- The aim is to address revenue loss from reduced fuel duty due to fewer petrol and diesel vehicles on the road.
- Electric vehicles stopped being exempt from vehicle excise duty since April this year.
- The government has committed £4 billion to support the EV market, including grants for lower upfront costs.
- Concerns have been raised about the impact of such taxes on the transition to electric vehicles.
- Some believe the details of the tax plan need to be clearer to understand its fairness and impact on EV adoption.
