Car tax changes: New pay-per-mile scheme needed ahead of 2030 petrol and diesel car ban

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James Taylor, general manager of Zipcar UK, has warned the need for a new road pricing scheme is “clear”. Mr Taylor warned a new pay-per-mile tax system could help “drive behaviour change” and help support “sustainable transport” and electric cars. 

Speaking to Express.co.uk, he said: “The 2030 ban on the sale of new petrol and diesel vehicles will put a large amount of fuel duty revenue at risk.

“With the continued growth in the number of electric vehicles on our roads, the need for a new national road pricing scheme is clear.

“What form that takes remains to be seen.

“As well as raising revenue for HM Treasury, a new road pricing system should be designed to drive behaviour change and support more sustainable transport behaviour.

READ MORE: Car tax scheme should not be ‘pulled prematurely’

Last December, the Department for Transport warned revenue from motoring taxes would need to “keep pace” with changes on the road.

The Government has not stated it will introduce road pricing, but warned it was still committed to achieving net-zero emissions by 2050.

They added any changes to the tax system would be considered by the Chancellor and announced in “due course”.

Despite the assurances, some experts are not fooled and believe plans may be closer in the pipeline.

Kevin Pratt, finance expert at Forbes Advisor has recently warned schemes could be introduced “sooner rather than later”.

Speaking to Express.co.uk earlier this week, he warned next year “might be too early” for a project but suggested a pay-per-mile scheme was on its way.

He said: “If this option is in the Government’s thought, they may decide to introduce it gradually in the years running up to 2030, when the proposed ban on the sale of new fossil fuel-powered private cars is due to kick in.

“So a driver doing more than, say, 20,000 miles a year might pay a levy on the mileage driven above that amount.

“The point at which the tax becomes due would then reduce each year until everyone has, say, 10,000 ‘free’ miles and pays for anything on top.

“Next year might be too early to see the introduction of such a radical scheme, even in a limited form.

“But the Government will likely act sooner rather than later to shore up its tax revenues.”

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