The motor sector has responded furiously to media reports that the government is to introduce a pay per mile levy on electric vehicles.
This week The Telegraph reported that electric vehicle (EV) drivers will be charged 3p per mile from 2028, under plans to be unveiled by the Chancellor in the forthcoming Budget.
The SMMT released an unattributed statement responding to the story, saying: “We recognise the need for a new approach to motoring taxes but at such a pivotal moment in the UK’s EV transition, this would be entirely the wrong measure at the wrong time.
“Introducing such a complex, costly regime that targets the very vehicles manufacturers are challenged to sell would be a strategic mistake – deterring consumers and further undermining industry’s ability to meet ZEV mandate targets, with significant ramifications for perceptions of the UK as a place to invest.
“A smarter, fair and future-ready taxation system requires a fundamental rethink – one that must be done in full partnership with the industry and other stakeholders.”
Ian Plummer, chief commercial officer at Autotrader, said: “We need more carrot and less stick if we’re serious about the electric transition. The Chancellor clearly needs to raise revenue but if she wants to encourage EV adoption, she should think extremely carefully before introducing pay-per-mile charging for EVs.”
John Cassidy, managing director of Close Brothers Motor Finance, said: “While it’s clear that the Government needs to find ways to plug the gaps left by falling fuel duty income, choosing to place the burden on electric vehicle (EV) drivers seems counterintuitive.
“EV demand is finally seeing a much needed surge and removing yet another incentive risks seriously derailing momentum.
