Since EVs are successful(ish) in the U.K., road user taxes have gone done. No good deed goes unpunished, eh?
Electric vehicles’ success is a headache for the Treasury
When Rishi Sunak announced a temporary cut of 5p a litre in fuel duty in last week’s Spring Statement, electric vehicles were probably not at the front of the chancellor’s mind. He was focusing on the vast majority of road users who experience “pain at the pump” from spiralling petrol costs. Yet the accompanying fiscal outlook from the Office for Budget Responsibility, the independent watchdog, noted that more than one in 10 cars sold in the UK last year were electric; by 2027, it forecast the proportion would rise to 59 per cent — double its forecast only six months ago. Consumer appetite for electric vehicles has consistently run ahead of the OBR’s estimates.
This poses a headache for the exchequer because of the importance of revenues from fuel duty and vehicle excise duty, neither of which electric car owners have to pay. Together, they raise about £35bn a year. The OBR forecasts the higher share of electric car sales alone will reduce motoring tax revenues by £2.1bn by 2026-27. It also assumes Sunak will be able to keep his promise to reverse the 5p cut in fuel duty — which may well prove over-optimistic.
One way to help balance the books might be to remove the subsidy regime, which has already been scaled back over the past decade and is now capped at a £1,500 grant on electric cars costing less than £32,000 — helpful support for EV sales. This would be foolhardy. The EV market is still in the nascent stages of growth, and government support to improve uptake will be warranted for some time yet.
The Commons transport select committee last month recommended considering road user charging as a like-for like replacement for fuel duty. This would involve monitoring all cars in the UK and charging according to the distance they drive, factoring in the type of vehicle used, and congestion. Some economists like this idea as a way of charging motorists proportionately for the public cost of building and maintaining roads. As the committee cautioned, however, any road charging mechanism should entirely replace fuel duty and vehicle excise duty rather than being added to them, and should not result in motorists paying more.
The government creates the problem by requiring these types of vehicles, then whines about the loss of revenue, so, finds new ways to get the money, which can be problematic for those who are over-reaching their budget when buying an EV.
And all being done for a scam.
Simple solution, remove the fuel tax. Now everyone is equal.
Sounds logical to me, FJB. I loved the Oscars. Watching a multi millionaire leftist Democrat slap the shit out of another leftist millionaire Democrat was entertaining. Since BLM I’ve grown fond of black on black crime even assaults. Notice how no one was arrested for it? But don’t you dare march on the Capitol THAT is treason!
FJB and his stupid VP.
Fuel taxes bore an at least somewhat reasonable relationship to road use; while miles per gallon can vary widely, higher MPG vehicles tend to be lighter, meaning that they put less wear-and-tear on the roads than lower MPG vehicles.
Fuel taxes don’t track your vehicle. Pumping 20 gallons of carbon-spewing gasoline still doesn’t tell the State where you’ve driven it.
With plug-in electrics, there are only a few ways to tax vehicle usage:
1 – Putting special meters on charging stations, including at-home charging stations, to determine how much sparktricity your Chevy Dolt is using. The downside is that thousands of people will build separate chargers that get around the requirement; I know that I would install such a device if available.
2 – Imposing once-yearly, or perhaps once-quarterly, vehicle taxes, which have to be paid directly to the government. The downside of this is that consumers would get hit with big tax bills every year, or quarter, bills that many could not afford.
3 – GPS tracking devices to monitor vehicle mileage, the downside being that the government woulod know your every f(ornicating) move!
Pay by mile EVs should pay their for share for using public roads (sociism) insurance companies and titles already ask for that info. Will dome people cheat? Yes of course they will just as some now cheat by using non road taxed diesel.
Of course your phone Dana tells “them” much more than just your GPS position. Wow 60% of new cars sold in 5 years in UK will be EVs ! And how about thst post from yrstrrfsy: a stock zlorsche drove from LA to NYC and total charging time was less than 2.5 hours. They mostly used the newest 350kW chargers
Also that Israeli Singapore company that is making the first commercial Electic plane.? They are doing taxi tests now first flight later this year
Production and delivery starting 2023 or 2024
“60% of new cars sold in 5 years in UK will be EVs!” Gee, John. I wonder why? Maybe be because all fossil fuel car production there will be banned in 2030? Again, if so good, why the mandates?
Hairy: “Pay by mile EVs should pay their for share for using public roads (sociism)…”
You need to learn the difference between socialism and community responsibility. Just because some function of society require the citizens as a whole to support it does not make it (socialist). Socialism is a lot more than a road, a road tax, a gas tax or a road toll. Grow up.
FJB, LOL
LGB stands for lesbian, gay, bi… LOL What are you trying to tell us?
Connies call anything they disagree with socialism or communism or nazism. Connies use roads, bridges, breathe clean air, drink clean water, use medicines, contracts, public schools, fire departments, police, courts, Social Security, Medicare, unemployment payments etc, therefore those are NOT socialism or communism. Being asked to wear a mask IS nazism, though.
Please don’t try and tell “connies” what they believe. It makes you sound like the fukin moron you are and you should keep that part of your fractured personality private.
I don’t know wat “connies” are but as an American I know what socialism, communism and Nazism are and they have nothing to do with what you listed there. Your usual projection?
Being asked to wear a mask isn’t any “ism”. Being forced</strong> to is all of your “isms”. A real Nazi lover like you just can’t grasp that little fact of freedom.
BTW, LGB stands for Let’s Go Brandon the cute lie told by a media moron to cover over a stadium full of people chanting “Fuck You Biden”. Now that you know try and not misuse it again you sound stupid and ignorant.
FJB, and his bitch Lameltoe. Oh, and screw the schvartze.
It really isn’t complex. The average driver drives about 15000 miles per year, with an average miles per gallon of about 25 mpg. That would be about 600 gallons burned.
The combined state an federal taxes is around 50 cents per gallon.
So the intrepid EV driver just pays $300.00 additional when they register/license there wonderful EV.
The state can divide up the money based on current rates.
I can hear Leftie heads a popping.