The Government’s Stance on Pay-Per-Mile Car Tax

The government has firmly rejected the notion of implementing a pay-per-mile car tax. This decision comes amidst growing concerns from various stakeholders about the potential environmental and economic impacts of such a tax.

Critics, however, believe this move could deter potential buyers and slow down the transition to greener transportation. ## The Introduction of Vehicle Excise Duty on Electric Cars The Department for Transport (DfT) has announced its decision to introduce vehicle excise duty (VED) on electric cars starting from April 2025. This move has sparked a heated debate among various stakeholders.

The Impact of Pay-Per-Mile on Motorists

The concept of a pay-per-mile system for motorists has been a topic of debate for years. While it promises to make road usage more equitable, it also raises concerns about its impact on different groups of drivers.

This fee is levied on all vehicles, regardless of their fuel type, emissions, or age. The flat rate system has been in place since 2017, replacing a previous structure that varied based on vehicle emissions. The flat rate system has been criticized for not reflecting the environmental impact of different vehicles. Critics argue that it fails to incentivize the purchase of cleaner, more fuel-efficient cars. In response to these criticisms, the UK government has proposed a new VED structure that would introduce a tiered system based on vehicle emissions.