Drivers 'worried' about new car tax changes as Government is 'moving the goalposts'
DRIVERS are "worried about" new car tax changes which could see electric cars charged to use the roads.
Question Time audience member reveals electric car 'anxiety'
Danny Morgan, Smart Home Charge Editor said there was “growing concern” over new road pricing plans. He said many drivers feel the Government was “moving the goalposts” for electric car drivers despite recent incentives.
It comes after a report from the Transport Select Committee recommended putting pay per mile charges onto electric vehicles.
Speaking to Express.co.uk, Mr Morgan said: “Incentives including the Salary Sacrifice Scheme and Government subsidies for home charging units have seen many make the switch.
“But there is growing concern that the Government is considering moving the goalposts.
“This recent suggestion to change EVs from tax-exempt to tax payable on road tax and increasing BiK, is something our customers are discussing, and worried about.”
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Under current rules, electric car owners are exempt from vehicle excise duty (VED) rates and fuel duty charges.
Most city-wide congestion charges and Clean Air Zones are also free to enter for EV owners.
But, the Committee’s report wanted electric car owners risked becoming accustomed to “no-tax motoring”.
At this stage, it will become “socially and politically difficult” for the Exchequer to introduce charges later down the line.
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They suggested the Government should “make it clear” to those who purchase EVs that they could soon “pay for road usage”.
It is believed the new charges are down to fears the Treasury could lose up to £35billion through the switch to electric cars.
However, as demand increases, VED and fuel duty income will be dramatically hit.
It comes just weeks after TV host Richard ‘Moggy’ Morgan warned electric car tax incentives could have the opposite effect.
He warned it could be a “double-edged sword” and lead to negative consequences later down the line.
He told Express.co.uk: “Not paying tax on electric vehicles is essentially a Government incentive.
“It's to incentivise you to go electric.
“That’s a good idea in some respects but equally it's a double-edged sword.
“You'll have other people that will fight against that incentive because they are of the mindset that the Government is forcing us to go down this route.
“‘They are shoving these electric cars down our throats. I don't want one but there are all these incentives’.
“And you can sometimes have a reverse effect sometimes when you have an incentive like that, and you don't need incentives like that.”