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Electric Vehicle owners could be taxed within three years

Electric car and van owners could have to pay road tax n less than three years, under plans being considered by Chancellor Jeremy Hunt for the Autumn Statement.

A Whitehall source has told the Daily Telegraph that it is now “inevitable” that electric vehicles would be subject to road tax “at some point”, adding that the Treasury was considering “when that should be”.

It says one of the options being considered by the Treasury to help plug the projected hole in public finances is to require owners of electric vehicles to begin paying Vehicle Excise Duty from the 2025/26 financial year.

The report says earlier this year, MPs warned that the £35 billion annual revenue from vehicle excise duty and fuel duty was set to fall to zero by 2040. The transport select committee has called for all drivers to be charged based on the distance they travel.

A Whitehall source said: “Everyone knows that electric vehicles will have to be subject to road tax at some point. The Treasury is considering when that should be, while ensuring uptake isn’t disincentivised in the short-term.”

Drivers of Electric vehicles also do not pay duty when they drive, unlike petrol and diesel drivers who currently pay through fuel duty. That has been described as an untenable situation in the long term as fewer petrol and diesel miles are driven, with a call for a distance-based charging system to be introduced instead.

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