Car tax

Author
Discussion

powerstroke

Original Poster:

10,283 posts

165 months

Saturday 3rd March 2018
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How will electric cars be taxed and how many will the government want to see registered
before they pounce ??

WaferThinHam

1,680 posts

135 months

Saturday 3rd March 2018
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You'll just pay a flat rate per year to use the road.

Probably based on purchase price, or the amount of Lithium in the battery when they release putting lithium into batteries is fairly polluting.

MrOrange

2,037 posts

258 months

Saturday 3rd March 2018
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powerstroke said:
How will electric cars be taxed and how many will the government want to see registered
before they pounce ??
Currently EV cars are subject to VAT at purchase time (less the grant), plus 5% VAT on the leccy they use and IPT, plus full VAT on servicing, tyres etc. Many are subject to the luxury car tax.

The government is keen to increase widespread adoption as it helps them with emissions targets and pollution levels in cities so it will be a long time before they “pounce” on EV. They will pounce first on diesel, petrol, and light hybrid. Increased tax on fossil fuel is likely over the next decade.

The current RFL system is a little dated and out of kilter with real world usage so it’s possible we’ll see road charging becoming more widespread, most likely split into tiers corresponding with pollution and emissions.

ecs

1,274 posts

175 months

Monday 5th March 2018
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You could still tax them on emissions based on the amount of CO2 created to generate the electricity they use, but we're hopefully going to see more renewable energy used in the more distant future so this probably wouldn't work.

Toll roads and/or a flat fee per year?

Heres Johnny

7,389 posts

129 months

Monday 5th March 2018
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They'll not be able to tax fuel easily which is I guess your point. If you tax electricity you're taxing other uses of it as its nigh on impossible to measure and the horse has probably already bolted.

The easy solution which I doubt they'll do as it would just open up a grey market is taxing tyres - I already pay more on tyres per mile than I do on electricity, its proportional to distance travelled and the way I drive, so stick a levy on them

Road pricing is really hard except for motorways and certain trunk roads but then you'll cause problems elsewhere.