Charge drivers by the mile to replace tax lost to EVs, says thinktank

Drivers should be charged on a per-mile basis to ensure Treasury coffers are topped up once electric cars become mainstream, according to a new report presented to MPs on Wednesday. The think tank's Future of Motoring paper warns that the Treasury faces a '£25billion fiscal black hole' in annual receipts from fuel duty when motorists switch from petrol and diesel cars to battery models. Think tank says motoring takes need a shake-up: Drivers should be charged on a per mile basis in a major overhaul of the UK´s motoring taxation system, according to the Centre of Policy Studies This would replace the 'outdated and onerous tax system', which currently is a combination of fuel duty paid on every litre and vehicle excise duty - or car tax - paid annually by drivers. Among the recommendations to charge motorists on a per-mile basis, drivers of zero-emissions EVs would pay 'significantly less' than those behind the wheel of petrol and diesel models to avoid 'denting the take-up' of greener vehicles. Among the recommendations to charge motorists on a per-mile basis, drivers of zero-emissions EVs would pay 'significantly less' than those behind the wheel of petrol and diesel models to avoid 'denting the take-up' of greener vehicles Dillon Smith, Centre for Policy Studies energy and environment researcher and report co-author, said the recommendations 'can lead to fairer, better and more efficient taxation while tackling congestion and improving air quality in our big cities'.