Post by acnedriver on May 25, 2023 6:22:47 GMT
A ’pay-as-you-drive’ tax should be introduced for electric vehicles (EVs) to replace lost revenues from fuel duty and VED.
That’s according to a new report, ‘The Future of Driving’, published by the think tank the Centre for Policy Studies.
It recommends that zero emission vehicles (ZEVs) should be charged a flat rate for every mile they drive, with the aim that they would still be paying significantly less than their petrol and diesel counterparts.
Everyone, the report says, would receive a set allocation of tax-free miles every year, with the allocation higher for those living in remote areas with fewer transport alternatives.
Eventually, as the share of ZEVs on the roads grows, this new per mile charging system could completely replace fuel duty and vehicle excise duty for all vehicles.
Each vehicle would be assigned a per mile rate, based on its weight to reflect wear on the roads, and charges would be collected monthly by direct debit.
www.fleetnews.co.uk/news/company-car-tax-and-legislation/2023/05/24/pay-as-you-drive-tax-for-electric-vehicles-to-plug-treasury-shortfall
That’s according to a new report, ‘The Future of Driving’, published by the think tank the Centre for Policy Studies.
It recommends that zero emission vehicles (ZEVs) should be charged a flat rate for every mile they drive, with the aim that they would still be paying significantly less than their petrol and diesel counterparts.
Everyone, the report says, would receive a set allocation of tax-free miles every year, with the allocation higher for those living in remote areas with fewer transport alternatives.
Eventually, as the share of ZEVs on the roads grows, this new per mile charging system could completely replace fuel duty and vehicle excise duty for all vehicles.
Each vehicle would be assigned a per mile rate, based on its weight to reflect wear on the roads, and charges would be collected monthly by direct debit.
www.fleetnews.co.uk/news/company-car-tax-and-legislation/2023/05/24/pay-as-you-drive-tax-for-electric-vehicles-to-plug-treasury-shortfall