teuchter
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Treasury ‘looking to road pricing’ as sales of electric cars rise
The move is reportedly being mulled to cover a tax shortfall of £40 billion caused by the rise in popularity of electric cars.
uk.sports.yahoo.com
Motorists could be charged for using Britain’s roads under plans reportedly being considered by Chancellor Rishi Sunak.
The Times reported the move is being mulled to cover a tax shortfall of £40 billion caused by the rise in popularity of electric cars.
According to the report, Mr Sunak is “very interested” in the concept of a national road pricing scheme but it is unclear how the charges would be calculated.
Currently motorists pay 57.95p in fuel duty for each litre of petrol and diesel they buy – a figure which has been frozen since March 2011.
This brings in £28 billion a year, or 1.3% of national income, according to the Institute for Fiscal Studies, while VAT on fuel and vehicle excise duty also raises money for the Treasury.
I may replace the link with a better article when one becomes available.
Road pricing has always seemed to me a better approach than taxing fuel, because it allows it to be adjusted according to location. So, it can be priced higher in places where there's congestion alongside good public transport alternatives, compared with, for example, rural areas where the reverse is true.
Last time it was raised, ten or fifteen years ago, it wasn't popular. Technology and other things have moved on since then - including the issue of revenue. It will be interesting to see how it plays out this time, if it's a serious proposal.