Motorists may be slapped with ‘barmy’ new car tax changes with pay per mile considered

Sadiq Khan ‘unwilling to delay’ Ulez expansion Motorists could be hit with ‘barmy’ new car tax measures to fill a ‘huge hole’ in finances when more road users switch to electric cars. Petrol and diesel drivers currently pay fuel duty charges when topping up at fuel stations. However, there are no such tax charges on electricity meaning the Treasury will face a major crisis when more people switch to EVs. This is likely to become an issue at the end of the decade when the Government bans the sale of new petrol and diesel machines. According to experts, drivers should not be ‘lulled into a false sense of security’ with ULEZ as authorities likely to introduce new measures. READ MORE Drivers may face £100million daily car tax fees under national ULEZ scheme Drivers may soon be hit with car tax changes Among the discussion is a new road pricing system which could charge road users for every mile they travel. Conor Holohan, campaign manager at the Taxpayers Alliance warned new tax measures were definitely on the horizon. He told GB News: ‘The thing is once ULEZ is implemented we shouldn’t be lulled into a false sense of security ‘When fuel duty is no longer raising money because people have electric cars we will have people trying to implement new taxes and we may even have even more barmy measures coming down the line. ‘There is going to be a huge hole and we have seen suggestions Sadiq Khan might charge by the mile. ‘The important thing is when new taxes are brought in once fuel duty dies away it’s done to match the impact of driving rather than just as a way of raising money. Some kind of road pricing scheme which is based on time and the demand on the road might be a way of doing it. ‘But it can’t be a scheme that’s made in the image of ULEZ which ends up just punishing poorer drivers who can’t upgrade or have to drive at certain times.’ According to the Office for Budget Responsibility (OBR) fuel duty is a ‘significant source of revenue’ for the Government. They estimate the fees raise a staggering £24.3 billion or around £867 per household in the UK. According to the Telegraph, Seb Dance, London’s deputy mayor for transport is understood to be looking into the introduction of a road pricing scheme. SUBSCRIBE Invalid email We use your sign-up to provide content in ways you’ve consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info Trending Drivers may soon be charged per mile they travel