Home Life & Style Pay-per-mile car tax charge may require ‘tracking’ devices with system monitoring location

Pay-per-mile car tax charge may require ‘tracking’ devices with system monitoring location

A new pay-per-mile car tax scheme could see tracking devices installed in cars with data collected on where drivers travel and when.

Experts warn information could eventually be gathered through a plug-in device or directly through vehicle telematics.

The increase in data means motorists could pay different tax fees based on when vehicles are used with higher fees for those travelling during rush hour.

The idea is just one of several suggestions outlined by the Campaign for Better Transport who have been looking into how a pay-per-mile charge could work.

Speaking to Express.co.uk, Silviya Barrett, Director of Policy and Campaigns, explained: “Drivers can be charged more during peak times or in more congested areas but that would require the system knowing where you’re driving and at what time.

“That would require some form of tracking. That can be done as a plug-in device or it can be done through telematics. The telematics records where you are driving as well as how much.”

The Campaign for Better Transport has suggested a 2p per kilometre fee should be introduced for electric vehicles. They claim this would make up for lost fuel duty revenue as more tourists make the transition away from petrol and diesel models.

By comparison, campaigners claim fuel duty costs work out at sound 4-6p per km depending on the fuel consumption of the vehicle.

However, tracking devices are not the only way a system could work with other non-intrusive measures also being looked into.

Silviya told Express.co.uk: “We’ve looked at different options so there are lots of different ways to make it work. If it is purely a per mile basis, so similar to fuel duty, that doesn’t require the system knowing where you’re driving and at what time of day.

“That can be done simply by checking your odometer by submitting a regular odometer reading.

“It can be at your annual MOT, it can be monthly, it can be an online system where drivers can submit a snapshot of their odometer.

“With modern cars, if we are talking about EVs they will have onboard telematics so it is possible this is just recorded directly from the vehicle telematics so drivers’ don’t really need to do anything.

“They just get the monthly bill based on mileage so it doesn’t even require any additional technology if that’s what we are looking to do.”

A recent poll from the Campaign for Better Transport found a staggering 49 percent of respondents supported the idea of a pay-as-you-drive scheme.

The survey found that just 18 percent of those surveyed were completely opposed to the idea.

Silviya added: “What we are recommending is you start with a simpler system for electric vehicles based on mileage only. If it’s a pilot, it can be run for quite a few years to make sure the system works.”


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