(Photo courtesy of: CHUTTERSNAP on Unsplash)
It comes as no surprise that in the budget, electric vehicles are to be charged annual road tax.
No one in the motor trade was in the least bit surprised because it was just a matter of time before this equalising to petrol/diesel RF Duty came about.
They share the same road, use the same space and actually wear out roads faster because they weigh on average around two tonnes apiece and smash pot holes to bits.
It also happens to be much needed income for the Government.
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Given that fuel duties incur around £2.40 per gallon with a further 20% VAT added on top, the Govt receipts are nearly £3.00 per gallon purchased whereas a full charge of electricity attracts just 5% VAT for the Govt.
The tax is 3p per mile for full EVs (Electric Vehicle) and half that for Hybrids so assuming 12000 miles pa, this equates to £360 for full electric cars. This is in keeping with petrol and diesel cars annual road tax.
Inevitably there had to be a levelling of the playing field but it was delayed sufficiently to ensure the EV sales transition got substantially under way first.
But how is the mileage fee to be administered and calculated? Maybe at each MOT test, the annual mileage would be recorded and a bill raised until it was realised that cars do not have to go for MOT testing until 3 years old. Ah, well we ask the owners to estimate and declare a mileage and send them a bill.
But what if we then sell the car mid-year and in any event under declared the estimate? Does the new owner pick up the extra
charge?
Now we hear EV owners must take their car to MOT testers for annual mileage verification despite not needing the MOT test.
Given that technology has long existed to electronically alter odometers by those so inclined, this all seems a hastily and ill-thought through knee jerk reaction by a Govt on the back foot.
My Suggestion? Grab a 2016 Ford Focus 1.5TDCI with 83mpg and £20 Road tax. Job done!
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