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Certain drivers could be hit with new pay-per-mile car tax fees

February 24, 202459 Comments
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Specialists have called for the introduction of new pay-per-mile car tax fees to ensure electric vehicle owners “pay their fair share” of charges

Some drivers might have to start paying a new car tax fee for every mile they drive, instead of an old form of fuel duty.

The Campaign for Better Transport says we need this new charge for electric car owners because the government won’t get as much money when fewer people use petrol and diesel cars.

Silviya Barrett, Director of Policy and Campaigns at the organisation, told Express.co.uk that even though electric cars will start paying vehicle tax soon, it won’t make up for the cash lost from fuel duty.

She explained: “VED are being introduced for electric vehicles from next year but the main source of revenue from vehicle taxes is fuel duty. And there is nothing that has replaced fuel duty for electric vehicles and that is where the main gap is.”

electric car

“As the increase for electric vehicles on the road grows, the bigger the gap will be if they pay no per mile tax as well on usage. What we are planning for is a per mile tax for electric vehicles that will basically make sure that the revenue for fuel duty remains broadly the same.”

The RAC Foundation said that in 2019, the government got £28billion from fuel duty, and cars gave more than half of that. Yet, a study by the group implies that fuel duty revenues could fall to a mere £11.4billion by mid-2028.

This would mean a whopping reduction of £5billion or 30.5%, which will be a big worry for policymakers. According to a recent survey from the Campaign for Better Transport, there’s wide support for the idea of pay-per-mile charges for electric vehicle owners.

In fact, 65% of those surveyed believe that electric vehicle users should pay tax charges just like petrol and diesel car drivers do. Silviya stated: “The Treasury has already said they are looking to make sure vehicle taxes keep in line with net zero.”

“So as more electric vehicles are introduced they want to make sure the revenue from vehicle taxes remain broadly the same. The only way that can happen is if electric vehicles pay their fair share, or their drivers rather.”

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