Electric vehicle owners could face car tax charges by 2025

Chancellor Jeremy Hunt could outline plans to target electric cars in the Autumn Statement on November 17, with car tax changes. According to sources familiar with the situation, the Chancellor is considering ‘dipping a toe in the water’ by applying car tax to EVs.Last year, the Treasury warned that new sources of revenue would be needed as more electric vehicles hit UK roads.With the 2030 petrol and diesel car sales ban just around the corner, revenue raised from fuel duty and car tax will be significantly reduced.There has been pressure on the Government to address the £35billion funding ‘black hole’ that will be left with the reduction in petrol and diesel cars.Currently, electric cars do not pay fuel duty or vehicle excise duty as they do not use fuel, nor do they produce tailpipe emissions.READ MORE: Electric car owners warned about towing trailers and caravans Electric vehicle owners could face car tax charges within three years. (Image: Getty) Jeremy Hunt may announce the change in the Autumn Statement. (Image: Getty)A Whitehall source claimed it was now inevitable that electric vehicles would be subject to road tax ‘at some point’, The Telegraph reported.The source added that the Treasury was considering ‘when it would be done’.As the 2030 deadline approaches, the £35billion shortfall will have a huge impact on Government finances.It is estimated that £7billion will come from VED, while the remaining £28billion per year would come from a loss in fuel duty.DON’T MISSDrivers face huge £1,000 fine for little-known parking law [WARNING]Drivers urged to use specific kind of petrol instead of E10 [SHOCKING]Petrol and diesel cars should be ‘upcycled’ instead of scrapped [INSIGHT] Clean Air Zones set to launch this year. (Image: Express)Huw Merriman MP, the former chair of the Transport Committee, said the Government needed to act to remedy the loss of two major sources of taxation, VED and fuel duty.He said the £35billion black hole is four percent of the entire tax-take, adding that: ‘Only £7billion of this goes back to the roads.’Schools and hospitals could be [hit] if motorists don’t continue to pay.’By using price as a lever, we can offer better prices at less congested times and have technology compare these directly to public transport alternatives.’