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Pay per mile could impact motorists of a popular kind of vehicle first, says expert

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Last updated: December 18, 2024 3:05 am
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Published: December 18, 2024
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Pay-per-mile car tax changes could hit one type of vehicle first with electric car owners most at risk of new fees being introduced.

Tim Wray, Sales Director at transport experts Kapsch, suggested electric cars could be used to test a pay-per-mile system before a wider roll-out for petrol and diesel models is considered. 

He admitted charging EVs would be a “soft start” for a road pricing scheme and is likely to be “politically acceptable”. 

This is because electric car owners are currently exempt from paying any car tax charges, unlike owners of more polluting petrol and diesel models.

Under the proposal, it seems the current Vehicle Excise Duty (VED) system would remain in place for combustion owners for the time being. 

Speaking to the Express, Tim said: “If we are trying to find politically acceptable ways of doing this, if we are trying to find a soft start if you like, it’s the easiest political case to make in the world to say what we are going to do is carry on with the existing system for petrol and diesel cars and only introduce this for EVs. 

“A particular road user that a) is generally pretty wealthy because by the way those EVs aren’t cheap and b) isn’t paying a penny at the moment.”

Over the summer, there were rumours that a pay-per-mile road pricing system was being drawn up by officials. 

However, the Department for Transport (DfT) confirmed a new system would not be introduced just before the Autumn Budget. 

A pay-per-mile system would charge motorists based on how far they travel instead of paying a flat fee. 

The policy means some owners who barely use their cars could save money while motorists who travel regularly pay more.

A recent Express poll found that the introduction of a pay-per-mile system could be unpopular with 86.73% calling for plans to be scrapped. 

Electric cars will pay VED from April 2025 under widespread changes although first-year rates are set at just £10 in a massive incentive. 

There have been concerns that raising tack on EVs could have an impact on demand for the models but Tim is less concerned.

He added: “Do we really believe the difference between buying an EV and not buying an EV is paying a proportion for the upkeep of the road? 

“I’ve had three or four EVs and I can guarantee every one of them was company car tax, That’s exactly why I was buying them.”

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