Electric cars 'will' be hit with new car tax changes with pay per mile likely to launch
CAR TAX fees being placed on electric cars "will happen" in the near future with a pay per mile system "probably" set to come into effect.
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Richard ‘Moggy’ Morgan, host of Quest’s Vintage Voltage said it was a case of “how” electric cars would be taxed than if they would be. He said it was unlikely fees would be issued directly to the electricity supply.
Instead, drivers were likely to be hit with fees through a black box installed in their vehicles to monitor how much they drive.
Alternatively, he warned a new scheme could use number plate recognition cameras to identify where cars travel to.
Speaking to Express.co.uk, he said: "At some point, once that tipping point has been reached, the Government will say ‘right we’ve incentived enough now’.
“Just like solar panels on your roof, that’s stopped, because the tipping point has happened now.
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“They’ve kickstarted that market, there’s lots of people on solar, they can’t sustain that anymore.
“At some point, taxation on electric cars will happen.
“How will it happen? Well you can’t tax electricity because that’s not going to end well.
“Electricity is used for lots of things, not just to power electric vehicles, to heat people’s homes etc.
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“Electricity is used for lots of things, not just to power electric vehicles, to heat people’s homes etc.
“The way it will probably go is having some kind of pay per mile type system.
“Where essentially you are paying for the vehicle tax in a ‘how many miles do you do per year’ type situation.
“Whether that's a black box thing in your car or number plate recognition systems, I don't know.
“I don’t think, I know at some point electric vehicles will be taxed and it’s just a case of how are you going to do that.”
Chancellor Rishi Sunak was understood to be considering a switch to a pay per mile scheme.
The Transport Select Committee has also spent time researching the viability of such a scheme being introduced.
However, it was reported the scheme was scrapped just days before last year’s Autumn Budget.
A source said there were “no active discussions” around road pricing at the moment.
However, they did warn there was an “issue around revenues” which “will have to be addressed”.
The Treasury has previously warned they could lose up to £40billion through the loss of fuel duty and Vehicle Excise Duty (VED) as more switch to EVs.
Back in 2020, the Department for Transport told Express.co.uk motoring taxes would have to “keep pace with changes on the road".
They added any tax changes were being considered by the Chancellor and would be announced in “due course”.