EV Tax implications for Settle and other rural areas is a concern as people living in smaller towns and villages would be hit hardest if the Government introduces its proposed ‘pay-as-you-go’ mileage-based tax on electrical car from April 2028, a recent study has shown.
The analysis by the vehicle leasing group The Electric Car said the tax could reduce EV ‘take ups’ at a time when the government is encouraging more motorists to switch away from polluting petrol and diesel vehicles.
People living in areas like Settle which are near larger towns and cities would pay the most on average at £156.51 a year. Those in urban areas and cities would pay £76.02. The tax is based on an annual charge of 3p per mile reducing to 1.5p a mile for plug in hybrid drivers. It is estimated to raise £1.1bn per annum and aims to make up for lost revenue from fuel duty from fewer people driving petrol, diesel and other fuelled cars. This duty is expected to raise £24bn in the current financial year (down from £27.5bn in 2019-20).
The Government launched a public consultation on their proposals in late November which closes on 18 March. It argues that “….All drivers should contribute to account for the wear and tear on our roads, and the funds needed to provide major road investments….”
Overall the analysis by the vehicle leasing group shows that drivers in the south west of England would pay more than four times as much as those in London, who would pay £33.09 a year. The capital has among the highest concentrations of electrical vehicles and charging points per capita.
You can read more about this here.