[MY340i]

so government currently collect c.£40bn from VED and fuel duty.

Big shift from petrol/diesel cars to EV, meaning less and less income from fuel duty and VED.

What ways are they going to make up for that shortfall? pay per mile?

[SuperHamz]

I think some form of pay per mile (currently what we call fuel duty) will be the most likely model adopted to tax EVs.

[TimMcC]

I agree that it'll likely accelerate the move to 'per mile' charging. And I'd expect that to apply to all vehicles, so ICE may effectively end up getting taxed twice. Currently they need to continue to incentivise EVs so I wouldn't expect this to come until much closer to the 2035 date.

Alternatively they might move to increase tax to make other polluting activities less attractive. For example introducing a tax on natural gas to encourage people to move to electric heating, a move resisted by many as gas is very cheap considering its environmental impact (even now). Or actually tax aircraft fuel and introduce a proper tax on flying that reflects the emissions?

[Watsey]

Adoption of EVs are certainly being incentivised, both for companies and for private buyers. Taxes and tax-offsets are attractive at the moment, but taxing the use of EVs will certainly rise in the future because it's inevitable.

The current revenue stream from liquid fuels will have to be replaced at some point. Whether that's a pay-per-mile model (much fairer) or a simpler annual fee based on either a flat fee ("EV tax = £X") or a stepped model based on vehicle purchase price (because ICE capacity and CO2 obviously don't apply) remains to be seen. PPM seems more likely IMO, but the infrastructure, or in-car technology, or in-car GPS logger (or similar) would obviously need to be implemented for all. That would be a big investment for the government and the car owner.

Times ere changing, and that's fine as long as the new funding model is fair and is revenue-neutral.

Gas-fired boilers are a bigger problem because the vast majority of buyers don't have any emotional attachment or sense of one-upmanship when it comes to boilers. 0-60C isn't going to win any bragging rights. They also tend to have a much longer lifespan. Using what would be viewed as punitive taxes to force a big capital investment would create a backlash.

[ian332isport]

Originally Posted by Watsey

as long as the new funding model is fair and is revenue-neutral.

[Watsey]

Originally Posted by ian332isport

OK, I'll rephrase.

"As long as it's revenue-neutral, if the government wants to avoid rocking the boat."

Given the size of the national debt I expect a wide range of taxes and tax breaks to be affected.

[SuperHamz]

I think one of the biggest problems for any new pay per mile system is going to be how they are going to track it - I can't see many people voluntarily opting to have a black box fitted to their car, irrelevant of any "assurances" any Government provides.

[JustChris]

Starting up my lead shielding GPS black box Ebay site....

[TimMcC]

Originally Posted by SuperHamz

I think one of the biggest problems for any new pay per mile system is going to be how they are going to track it - I can't see many people voluntarily opting to have a black box fitted to their car, irrelevant of any "assurances" any Government provides.

Ask you to manually submit it, and then use the figure they already collect via the MOT to check it?

[Tengocity]

I would have thought that any road pricing would also be designed to reduce congestion, so would require dynamic pricing based on hours of the day in certain areas. That would suggest some sort of automated system, which does talk to everyone having some sort of tracker eventually.

[TimMcC]

Originally Posted by Tengocity

I would have thought that any road pricing would also be designed to reduce congestion, so would require dynamic pricing based on hours of the day in certain areas. That would suggest some sort of automated system, which does talk to everyone having some sort of tracker eventually.

If it's only certain roads you'd want to do that on, probably cheaper, easier, and less of a political hot potato to use ANPR?

I'd have thought rather than time shift car movements it would be better for congestion *and* the environment if they just used mileage to tax us and help persuade us all to use our legs or public transport.

[RobUK]

Originally Posted by TimMcC

I agree that it'll likely accelerate the move to 'per mile' charging. And I'd expect that to apply to all vehicles, so ICE may effectively end up getting taxed twice.

ICE owners already enjoy that perk - VAT is applied after fuel duty

[KRS_SN]

Currently EV purcahse is optional as a buy so I don't think they'll tax it much, once EV's are mandatory they'll get taxed too.