With the government announcing that vehicles may be taxed on PAYG per mile. How is this going to affect Motability vehicles? Is it the end of free tax through the Motability scheme?
My understanding is that this is being proposed not as a way of replacing what we know as road tax (although it could and might be argued to be fairer, as long as those who are exempt from VED get a discount), but as a way to replace the loss in fuel duty as a result of the gradual switch to electric cars. Ultimately, it will mean that running an electric car in the future will cost the same as it does to run a petrol car, as pay per mile is an obvious way to retain the overall tax take from motorists. Either way, it should have no effect on the Motability scheme.
