Car tax changes: Drivers should not become ‘cash cows’ as Government lose revenue streams


Car tax updates could soon be introduced with the Transport Committee currently investigating the possibility of a pay per mile road pricing scheme. The proposals are being considered after the Treasury has warned of a £40billion black hole in public finances caused by the transition to electric cars.

As more drivers buy electric models there will be less money through traditional Vehicle Excise Duty (VED) and fuel duty charges.

However, motoring lawyer Nick Freeman has warned the government cannot look at the motorists to cover shortfalls in their revenue streams.

Speaking to, he said: “They’re about to lose a massive source of revenue and that revenue is not just used for roads and infrastructure.

“It’s used to compensate a whole host of other shortfalls. It’s now beginning to think, how are we going to fill this hole and they are coming up with all sorts of different schemes.

READ MORE: Car tax changes will be introduced in two UK cities

This would be introduced for the most polluting models from 2021 before a gradual tightening of the rules over the next decade.

The proposals would mean only electric vehicles were tax-free by 2030 as a way to further incentivise the sale of the models.

However, Mr Freeman has not backed the proposals highlighting there is a “clear conflict” with taxing drivers in the wake of the coronavirus pandemic.

He told “We have to also bear in mind that as well as the unfairness of that we live in an age now where we have Covid with us.

“Our private cars, our private transport is a safe space. Whereas before there was a move to get people on public transport that is now the last place you want people; going on.

“People need to be encouraged to use their cars and stay safe and stay well and socially distance.

“There’s a clear conflict between raising the country’s finance and keeping the country safe. They fly in the face of each other.”

Instead, Mr Freeman has proposed drivers should be charged regardless of what vehicle they run on the roads.

He has called for a “uniform and fair” system and said the government should not be concerned about raising taxes for electric cars.

He told “In my view what the government now should be doing is saying we need a system which is uniform and fair

“That to me is I don’t care whether your car is hydrogen, combustion or electric whatever mileage you do, however you fill up there will be the same tax associated with your consumption.

“That’s how it should operate, they are thinking ‘well when we have electric cars what are we going to do’, well you’re going to have to tax electric cars aren’t you, of course, you are.”

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