EV, drivers and Fuel Tax
Digest more
As more drivers switch to electric cars, the Government faces a growing shortfall in tax receipts. Fuel duty currently raises around £25bn a year, but Treasury projections suggest that as much as £12bn could be lost annually by 2040 due to declining petrol and diesel sales.
Chancellor Rachel Reeves is weighing plans to introduce a pay-per-mile tax on electric vehicles in her November Budget, with drivers facing a 3p-per-mile charge to offset falling fuel duty revenue.
For self-confessed tech geek and adrenaline junkie Farhan Abdul Rahim, becoming one of the first Malaysians to own an electric car in 2020 was a no-brainer - but he didn't simply stop there.
With the Budget approaching, the proposal - and its potential impact on consumer confidence, EV uptake and government revenues - looks set to be a major flashpoint
GlobalData on MSN
Motor industry warns EV mileage tax could stall adoption
The UK motor industry has responded with caution to reports that the government is considering a pay-per-mile tax on electric vehicles (EVs), expected to be announced in the Autumn Budget and implemented from 2028.
Which? has analysed the cost of charging EVs at chargers across the UK, with home chargers at off-peak rates costing just 2p per mile.