MPs call for road use tax to replace fuel and excise duty
Neither tax is levied on electric vehicles, so as sales of these increase, the committee has warned that revenue could fall to zero by 2040.MPs stressed the importance of a solution, especially with regard to EV drivers to ensure they are aware they will need to contribute. “The situation is urgent.
The arm’s-length body [between the Department for Transport and the Treasury] should be tasked with recommending an alternative road charging mechanism to replace fuel duty and vehicle excise duty by the end of 2022.”The committee also flagged that cheaper driving is likely to lead to more congestion. In September 2018, the DfT forecast that national traffic levels would rise by 51% between 2015 and 2050 as people shifted to EVs.
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