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September 2021 - Automotive

Most popular solution to anticipated fuel tax loss is a new EV tax: A survey has revealed that the most popular solution to the Treasury's anticipated £40 billion fuel tax loss due to the growing EV market is a new Electric Vehicle tax, supported by 38% of the respondents polled.

The research by Venson Automotive Solutions polled 300 motorists, finding that the majority (87%) agree that fuel taxes do need to be recouped as the adoption of EVs rises in the UK, with the preferred solution meaning that drivers with heavier vehicles would pay greater taxes than those with larger engine sizes.

The second preferred solution expressed by a third of respondents (32%) was the end of free charging points for EV vehicles, instead replacing them with paid-or public charging points. Slightly fewer people (31%) cited a 'Road Miles' system which would mean greater charges for those who had higher milage.

The survey also found that more than a quarter of motorists polled (27%) believe that businesses operating fleets of Electric Vehicles should pay additional costs.

Asked about the House of Commons Select Committee recommendation that road pricing is one of the best fiscal changes to make, just over a fifth (22%) were in agreeance.

Simon Staton, Client Management Director of Venson Automotive Solutions said of the findings: "Our survey findings confirm an understanding by the public that some sort of EV tax or related user charges will be necessary, which should offer Government assurances that people are mentally preparing to make the switch, if they haven’t done so already."

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