"Rachel Reeves is drawing up plans for a new pay-per-mile tax for electric vehicles to announce in this month's budget worth an extra 250 a year on average, according to reports. Under the plans expected to be announced on 26 November, EV drivers would face a new charge of 3p a mile on top of other road taxes to offset falling revenue from petrol and diesel cars as drivers switch to greener options."
"The chancellor will reportedly argue that this will be fairer, as drivers of petrol or diesel cars currently pay 600 a year in fuel duty, on average. The move will also help her plug a fiscal hole of between 20bn and 30bn by the end of the parliament. A government spokesperson told the BBC: Fuel duty covers petrol and diesel, but there's no equivalent for electric vehicles. We want a fairer system for all drivers."
"The scheme would start in 2028 after a consultation, by which time up to 6 million people are expected to be driving electric cars or vans, according to the Daily Telegraph, which first reported the news. It comes about a year after the Campaign for Better Transport urged Reeves to introduce a pay-per-mile road charging scheme to fill the growing revenue gap."
Rachel Reeves is proposing a pay-per-mile charge of 3p per mile for electric vehicles that would add about 250 a year on average. The charge aims to offset falling fuel duty receipts as drivers switch from petrol and diesel and to help close a projected fiscal gap of 20bn–30bn by the end of the parliament. The scheme is planned to begin in 2028 after consultation, by which time up to 6 million cars or vans could be electric. Transport campaigners and policy institutes have recommended similar road-pricing approaches. EV numbers currently exceed 1.3 million and interest in telematics insurance is rising.
Read at www.theguardian.com
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