The cost of driving an electric car has been thrust back into the spotlight after reports suggested that Andy Burnham’s Labour Government is considering a new “two-tier” road tax system that would see EV owners pay less than petrol and diesel drivers when the UK eventually moves to a pay-per-mile charging model.
According to reports, ministers are exploring changes to the proposed Electric Vehicle Excise Duty (eVED) scheme, which is expected to replace dwindling fuel duty revenues as more motorists switch away from petrol and diesel cars.
Rather than applying the same annual increases to every powertrain, the revised proposal would reportedly see electric vehicle charges rise in line with the Consumer Prices Index (CPI), while taxes affecting petrol and diesel motorists would continue to track the traditionally higher Retail Prices Index (RPI).
Shorts
Although the finer details have yet to be confirmed, the move has been interpreted as an attempt to preserve some financial incentive for motorists considering making the switch, even after EVs lost their exemption from vehicle excise duty earlier this year.
