Campaign Urges UK to Tax Zero-Emission Vehicles to Replace Lost Fuel Duty
Campaign for Better Transport (CBT) has urged UK Chancellor Rachel Reeves to implement a pay-as-you-drive levy on zero-emission vehicles (ZEVs). This comes as the shift from petrol and diesel vehicles is expected to cause a £5bn annual decline in fuel duty revenue by 2033.
CBT leads the 'Pay-as-you-drive Forum', a coalition of 37 organisations supporting a Treasury move on vehicle taxation. The forum suggests a per-mile charge on ZEVs as a simple and immediate solution to address the falling fuel duty revenue. This proposal aligns with the public's view, with 65% believing it is fair for ZEV drivers to pay some form of tax.
ADEPT, a member of the forum, believes a well-designed pay-as-you-drive system could provide a sustainable funding source for road infrastructure and encourage greener travel choices. CBT proposes an adequate transition period to allow the industry to prepare for the levy's implementation, and suggests exempting existing ZEV drivers to incentivise uptake before the implementation date.
CBT's call for a pay-as-you-drive levy on ZEVs aims to address the declining fuel duty revenue and ensure a fair taxation system. The proposed per-mile charge, supported by a wide range of organisations, could provide a sustainable funding source for road infrastructure while encouraging greener travel choices.
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