Car tax changes may see drivers buy electric cars earlier than planned

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  • #140733 Reply
    rox
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    Car tax changes may see drivers buy electric cars earlier than planned to ‘avoid charges’
    by Luke Chillingsworth

    The Chancellor is said to be considering the introduction of a pay per mile system which could replace traditional fuel duty and Vehicle Excise Duty (VED) charges. This would see drivers charged for each mile they travel instead of a flat fee based on vehicle emissions.

    Ryan Fulthorpe, car insurance spokesman for Go Compare said it was difficult to speculate how the charge could affect insurance charges once it was introduced.

    However, he has speculated the scheme will lead to a change in direction with many road users switching to cleaner models to avoid the fees.

    Speaking to Express.co.uk, Mr Fulthorpe said: “This has been mooted by the current Chancellor.

    “Although not much detail of how this could work has been revealed, this is not the first time a pay per mile charge has been suggested.

    “Plans were dropped for a proposed charge due to a public backlash.

    “It is difficult to say what this could do to car and van insurance without knowing the details of the scheme.

    “However should a pay per mile charge be introduced I think we may see more drivers switching to EVs earlier than planned in an effort to avoid the charge.”

    Under the current system, all-electric cars are exempt from tax charges as these are based purely on emissions.

    No road tax fees was a major selling point of many electric models with drivers expected to save hundreds of pounds each year.

    However, it is not yet known whether electric cars would be included in a future road pricing scheme.

    A pay per mile charge would work better across different fuel types as charges will be based on distance rather than how dirty a car is.

    Speaking previously to Express.co.uk, Tom Leathes, expert at Motorway.co.uk said drivers should “expect” electric cars to pay tax eventually.

    He said: “We have to expect electric cars are going to pay road tax.”

    He added: “Being completely realistic and pragmatic you can’t exempt them forever.

    “But I think from the EV owner point of view that is a little bit scary because you feel like that is one of your big reasons [to switch].”

    The Department for Transport (DfT) said it was committed to achieving net-zero carbide mission by 2050 and in the transition to electric vehicles.

    They said as they move forward with the transition, it was vital to ensure revenue from motoring taxes keeps pace with change.

    The DfT added any updates to the tax system will be considered by the Chancellor with any further steps announced in due course.

    Motoring lawyer Nick Freeman has also claimed it was inevitable electric car owners would be chargers tax.

    He said electric car drivers were “blind and deluded” if they thought they could escape tax charges forever.

    Mr Freeman said: “The moment everybody is in electric cars or the majority are in electric cars they are going to be taxed because the government needs to use the revenue.”

    He added: “If they believe they are going to get away with this tax-free it ain’t going to happen. It’s just not going to happen.”

Viewing 6 replies - 1 through 6 (of 6 total)
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  • #140734 Reply
    fwippers
    Participant

    Erosion of freedom’s and will affect the poorest in society and those in rural areas.

    #140735 Reply
    MickC

    Motoring lawyer Nick Freeman has also claimed it was inevitable electric car owners would be chargers tax.

    He said electric car drivers were “blind and deluded” if they thought they could escape tax charges forever.

    Mr Freeman said: “The moment everybody is in electric cars or the majority are in electric cars they are going to be taxed because the government needs to use the revenue.”

    Oh yes ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

    #140737 Reply
    rox
    Blocked

    Erosion of freedom’s and will affect the poorest in society and those in rural areas.

    That’s their ultimate plan and it’s one of the reasons on parts of motorway where they putting in low speed limits to stop pollution ev’s are restricted to the lower speed as well and

    Ultra Low Emissions Vehicle (ULEV) Streets in the City Fringe which prohibit petrol and diesel cars from 7am to 10am and from 4pm to 7pm. The ban, which is enforced Monday to Friday, restricts users of these roads to walking, cycling and driving a low emissions vehicle (a vehicle which emits less than 75g/km of CO2). Anyone in breach of the rules will face a £130 fine.

    In total, nine streets are affected (full list below) with the strict CO2 limit meaning only fully electric, hydrogen and the cleanest of hybrids will be able to enter the areas. Just like the congestion charge, cars will be monitored using automatic number plate recognition cameras.

    plus

    Private cars will banned from taking “through trips” across Birmingham city centre under plans to cut pollution.

    Cars would be able to drive into the city, but to get to other areas they will need to use the ring road.

    The city council wants to encourage greater use of public transport, walking and cycling and have presented this as a draft plan for 2031 to tackle air pollution.

    Birmingham is not the only city in the UK to look at changing the way people use cars.

    I wonder if due to our disabilities and getting free roadtax we would be exempt. I highly doubt it though.. plus one will still have to pay for the fuel to travel on top of the fee per mile.

     

     

    #140741 Reply
    rox
    Blocked

    I can see alot of scheme users, not being able to afford to travel in our cars if we are not exempt like we are from road tax. Which may lead to a flood of early lease terminations. as £6100 is a huge rise in costs to travel 10k of miles a year.. plus also the cost of fuel or energy is also not included in the 7.5k figure quoted at 75p permile. So it’s likely to be around 8k to travel 10,000 miles. how many will just refuse to pay it..

    #140786 Reply
    Abercol
    Participant

    At 75p a mile I’d be £19,000+ a year, plus the current £7k per annum cost of owning/running the car, not a chance, I’d have to quit working. My town is in rural Scotland, high unemployment and no jobs here, hence my commute to Aberdeen.

    Move to Aberdeen you say…well, my house is worth about the same as a studio flat in Aberdeen, so that’s a no-go.

    I’d say they are ripping everyone off at 75p (think the paper chose the rate they give their employees for work mileage!) 15p maybe, that would cover the fuel duty and VED and a wee bit more for the cost of the scheme. The big issue though is would they reduce the fuel price as the VAT is now in the road pricing instead – my gut says no…

    The saving grace for us is that we get to change cars pretty quickly via Motability so can be more agile than the poor sods who can’t avoid running an old petrol car nor afford the mileage tax – so they are effectively priced off the road.

    Indeed, Rox’s rich get richer poor can suffer model comes to pass.

    The ideal solution would be leave fuel duty & ved alone, bring in a per mile charge for electric vehicles to replace the fuel duty – by 2030 onwards we will all be in them anyway, so, no penalty for the poor in old bangers  (but you can progressively raise fuel duty over the years to push them to 2nd hand electric) and everyone pays their way.

    In life, it's not who you know that's important, it's how your wife found out.

    #140815 Reply
    rox
    Blocked

    That truely is crazy abercol, what will be the point working and commuting, if it just becomes so expensive it’s not viable. Plus public transport is not cheap at all and often not as useful as they tell you it is..

    Although one maybe able to operate a jcb digger say from your own home at some point for example so there will be no need to got the the actual site day after day..

    just like drone operators and i do think this all is to stop people using personal transport altogether.

    All by pricing the poorest out of the marketand making the car not viable anymore..

    Like also closing off roads to cars and forcing al of them down main routes / ring roads they cause more congestion, and as you have to travel further create more pollution.

    They do this so they can then complain about it and offer the new solutions which often are more restrictions. Rather than just ban stuff they do these underhand tricks to make you do what they want and condition you to the new norm..

    Just like the wef predictions for 2030 is everyone will own nothing and be happy and rent everything.. It no joke at all..plus we all will eat less meat and it will be a special treat. I wonder how they will look to achieve those goals as that’s what they are really..

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