Are You Worried About Pay-Per-Mile Tax?

Fri 27th Nov 2020

As the UK government looks to plug a hole in their revenues with the forthcoming loss of fuel tax, many drivers are worried that they will end up paying more tax than ever.

A poll of 1700 drivers by the RAC found that 44 per cent were strongly concerned that the Government would use a ‘pay per mile’ system to make drivers pay more tax. In total three out of four drivers agreed with the statement.

“As more electric vehicles come on to our roads, revenue from fuel duty will decline so it’s inevitable a new system will have to be developed,” said RAC head of roads policy Nicholas Lyes.

“While not paying car tax is clearly an incentive to go fully electric at the moment, we will very soon need a system that can levy tax on both conventionally fuelled and battery electric vehicles fairly.”

The worries come as the end of new petrol and diesel car production was announced this month, a ruling which will see a ban on all combustion engines from 2030, putting an end to dirty fuels and seeing the fuel duties slump.

With chancellor Rishi Sunak set to investigate ways to claw back those monies, many of those polled believe that those who drive more should be the ones paying the most tax, with almost 49 per cent agreeing with that policy.