WANTED: A NEW WAY TO RAISE £28BN USING EVs
JUST HOW DO you fill a £28 billion black hole in the public purse when fuel use dries up in the age of the electric car? That’s what the government is currently wrestling with. The £28bn raised in fuel duty is about as simple as taxation gets: the more you use, the more you pay, and it’s collected at the time of payment. Unlike road tax (£7bn raised a year), fuel duty receipts go straight to the central pot of government funds rather than simply being used on the roads. As for how to tax electric cars, where do you start? The ability to charge EVs in such disparate locations and in such disparate ways would make collecting revenue a practical nightmare, before you consider the complexity of the technical solutions to…