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Car tax changes may see drivers buy electric cars earlier than planned to 'avoid charges'

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The Chancellor is said to be considering the introduction of a pay per mile system which could replace traditional fuel duty and Vehicle Excise Duty (VED) charges. This would see drivers charged for each mile they travel instead of a flat fee based on vehicle emissions.

Ryan Fulthorpe, car insurance spokesman for Go Compare said it was difficult to speculate how the charge could affect insurance charges once it was introduced.

However, he has speculated the scheme will lead to a change in direction with many road users switching to cleaner models to avoid the fees.

Speaking to Express.co.uk, Mr Fulthorpe said: “This has been mooted by the current Chancellor.

“Although not much detail of how this could work has been revealed, this is not the first time a pay per mile charge has been suggested.

READ MORE: Car tax changes: Fuel duty increase is ‘no big deal’

No road tax fees was a major selling point of many electric models with drivers expected to save hundreds of pounds each year.

However, it is not yet known whether electric cars would be included in a future road pricing scheme.

A pay per mile charge would work better across different fuel types as charges will be based on distance rather than how dirty a car is.

Speaking previously to Express.co.uk, Tom Leathes, expert at Motorway.co.uk said drivers should “expect” electric cars to pay tax eventually.

They said as they move forward with the transition, it was vital to ensure revenue from motoring taxes keeps pace with change.

The DfT added any updates to the tax system will be considered by the Chancellor with any further steps announced in due course.

Motoring lawyer Nick Freeman has also claimed it was inevitable electric car owners would be chargers tax.

He said electric car drivers were “blind and deluded” if they thought they could escape tax charges forever.

Mr Freeman said: “The moment everybody is in electric cars or the majority are in electric cars they are going to be taxed because the government needs to use the revenue.”

He added: “If they believe they are going to get away with this tax-free it ain’t going to happen. It’s just not going to happen.”



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