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Post by Red Rackham on Oct 28, 2024 16:34:23 GMT
The Government has issued an official update on pay-per-mile car tax - a strategy that would see drivers pay a fee for every mile they drive in a bid to cut a hole in Government finances. Chancellor Rachel Reeves is being urged to impose a pay-per-mile scheme on UK drivers to avoid a “black hole” from lost fuel duty revenue. Under the plan, drivers with a ZEV (zero emission vehicles) before the implementation date would be exempt [For a limited period of time] incentivising the switch to electric motoring. Duties levied on petrol, diesel and other fuels generate around £25 billion a year in revenue for the Treasury. Successive governments have found the prospect of introducing per-mile charges – known as road pricing – to be too politically toxic. www.manchestereveningnews.co.uk/news/uk-news/official-government-update-dvla-tax-30034469This government are very aware that electric cars are less than popular and people cant be forced to buy them, so what's the alternative? Take the focus off electric cars by taxing drivers of diesel and petrol cars off the road. Watch this space...
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Post by wapentake on Oct 28, 2024 16:45:12 GMT
The Government has issued an official update on pay-per-mile car tax - a strategy that would see drivers pay a fee for every mile they drive in a bid to cut a hole in Government finances. Chancellor Rachel Reeves is being urged to impose a pay-per-mile scheme on UK drivers to avoid a “black hole” from lost fuel duty revenue. Under the plan, drivers with a ZEV (zero emission vehicles) before the implementation date would be exempt [For a limited period of time] incentivising the switch to electric motoring. Duties levied on petrol, diesel and other fuels generate around £25 billion a year in revenue for the Treasury. Successive governments have found the prospect of introducing per-mile charges – known as road pricing – to be too politically toxic. www.manchestereveningnews.co.uk/news/uk-news/official-government-update-dvla-tax-30034469This government are very aware that electric cars are less than popular and people cant be forced to buy them, so what's the alternative? Take the focus off electric cars by taxing drivers of diesel and petrol cars off the road. Watch this space... Yes if they can get away with it will keep the fuel duty and charge ice vehicles pay per mile.
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Post by Red Rackham on Oct 28, 2024 16:57:02 GMT
Yes if they can get away with it will keep the fuel duty and charge ice vehicles pay per mile. Well the government will get away with it by simply increasing tax on petrol & diesel fuel and cars. But EV drivers wont get away with it because all the petrol/diesel revenue that's lost will obviously be picked up by EV drivers. Any EV drivers who think they wont be clobbered by tax, probably pay-per-mile, are kidding themselves. The tax take will obviously not go down after the government have successfully taxed petrol/diesel cars off the road. No government is going to introduce a policy that reduces revenue. EV drivers will be exposed to exactly the same level of tax as petrol/diesel drivers are today, although many of them don't seem to realise it, yet.
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Post by Baron von Lotsov on Oct 28, 2024 17:29:52 GMT
Pay per mile is the fairest way. Now with EVs it makes it an even fairer system. That's just a mathematical fact. It's also a fact that if you want the economy to be more efficient then this is what you do. You remove distortion. The pay per mile is an exact mapping between what you use and what you pay, so there is zero distortion and hence it is optimal in the economic sense.
By the way, imagine if we started with pay per mile and then we changed to a system where all petrol cars had to pay for all the EVs' road usage and it was a flat fee per year. You would get people up in arms. Any change creates resistance and that is down to human psychology, but change can bring improvement, although rare in Blighty, so you get an association between change and something getting worse.
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Post by wapentake on Oct 28, 2024 17:46:45 GMT
Yes if they can get away with it will keep the fuel duty and charge ice vehicles pay per mile. Well the government will get away with it by simply increasing tax on petrol & diesel fuel and cars. But EV drivers wont get away with it because all the petrol/diesel revenue that's lost will obviously be picked up by EV drivers. Any EV drivers who think they wont be clobbered by tax, probably pay-per-mile, are kidding themselves. The tax take will obviously not go down after the government have successfully taxed petrol/diesel cars off the road. No government is going to introduce a policy that reduces revenue. EV drivers will be exposed to exactly the same level of tax as petrol/diesel drivers are today, although many of them don't seem to realise it, yet. The point I was making red they’ll charge those with petrol and diesel cars fuel duty and charge them pay per mile too
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Post by Red Rackham on Oct 28, 2024 18:18:00 GMT
The point I was making red they’ll charge those with petrol and diesel cars fuel duty and charge them pay per mile too Oh right, yes I see, and I agree. But I don't think the government will make much of a secret about the fact that diesel/petrol car drivers will hammered with tax to force them off the road. On the other hand, I do think the government will be much less forthcoming about the amount of tax that EV drivers are going to be hammered with, and the fact is the shortfall due to the loss of diesel/petrol revenue will be picked up by EV drivers.
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Post by Baron von Lotsov on Oct 28, 2024 22:04:51 GMT
The point I was making red they’ll charge those with petrol and diesel cars fuel duty and charge them pay per mile too Oh right, yes I see, and I agree. But I don't think the government will make much of a secret about the fact that diesel/petrol car drivers will hammered with tax to force them off the road. On the other hand, I do think the government will be much less forthcoming about the amount of tax that EV drivers are going to be hammered with, and the fact is the shortfall due to the loss of diesel/petrol revenue will be picked up by EV drivers. It's the weight of the vehicle which destroys the road. Maybe charge by weight.
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Post by Red Rackham on Oct 28, 2024 22:43:46 GMT
It's the weight of the vehicle which destroys the road. Maybe charge by weight. Yes I agree, but it's never going to happen. If cars were road priced or charged by weight then EV owners would have to pay twice the rate of diesel/petrol cars, and that would never do.
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