Drivers have been warned new pay-per-mile car tax is a “guinea pig” which could soon impact EVERYONE. Howard Cox, founder of FairFuelUK, fears the new electric 3p per mile car tax fee is a “guinea pig” which could soon see all vehicles affected.
Cox stressed that “digital ID control” of road movements could be next. Speaking to the Express, Howard said: “I fear the 3p pay per mile on EVs is the thin end of the wedge that will hit all motorists, whatever the fuel is used. FairFuelUK will continue to fight for lower road user taxes.”
When asked if he meant the new EV charge could be the first move towards a wider move which would encompass petrol and diesel cars, Howard responded: “Eventually yes.”
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He added: “EVs are the guinea pigs to a digital ID control of our road movements for all vehicles.”
According to the OBR, the new per-mile charge is expected to bring in £1.1bn in the 2028-29 financial year, rising to £1.9bn by 2030-31.
However, the amount of money it actually raises will depend on how many people buy electric cars over the next five years, with the report adding the yield “is uncertain”.
The OBR said the new charge was “likely to reduce demand for electric cars as it increases their lifetime cost”.
“To meet the mandate, manufacturers would therefore need to respond through lowering prices or reducing sales of non-EV vehicles,” it added.
Overall, the charge is forecast to result in about 440,000 fewer electric car sales, though other government policies could help offset around 320,000 of those.
The RAC’s head of policy, Simon Williams, said the fuel duty freeze was a “relief” but it would be “very short-lived given the staggered increase from next September”.
“Without the discount, drivers would still be paying more for a litre of petrol than they were prior to Russia’s invasion of Ukraine in February 2022, which sent pump prices rocketing to record levels.”
