The government has proposed a plan to introduce a GPS-based road-pricing scheme to plug the financial hole created by electric vehicles -
The Transport Select Committee has presented its report to MPs backing the introduction of a new road pricing structure to replace fuel duty and VED as a means of generating tax revenue to plug the financial hole created by the switch to electric vehicles.
Electric cars are currently exempt from paying VED charges and there is no duty payable on the electricity used to charge their batteries, therefore should the current system remain as it is there is a potential for a £35 billion shortfall in the Government’s annual tax revenue should its goal of switching the UK’s fleet of internal combustion engined cars to electric come to fruition.
However, there have already been questions raised as to privacy laws regarding this level of surveillance, which the report refutes using the example of black boxes that are already voluntarily installed by young drivers as a means of reducing their insurance premiums. However, how well this goes down with experienced road users is another matter, and one that will likely remain very contentious.
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