A pay-per-mile tax in the Budget would play havoc with sales of electric vehicles.
That’s the key finding form a What Car? Survey which found that more than half of people in the market for a new car would be deterred from buying an electric vehicle (EV) if a pay-per-mile tax is introduced in the Budget.
What Car? asked 4,368 in-market car buyers if the Government’s rumoured 3p per mile EV tax would put them off going electric.
Across owners of all types of car, 52% of people said it would deter them, and only 20% thought the new tax would be a good idea.
The pay-per-mile issue has been doing the rounds since the The Telegraph reported that electric vehicle (EV) drivers will be charged 3p per mile from 2028.
The SMMT released a 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.”