The UK think tank, Resolution Foundation has proposed a 6p-per-mile (7 cents) road tax on electric vehicles (EVs) to avoid a massive shortfall in tax revenues. To achieve this, vehicles would be tracked with GPS, adding to the growing surveillance nightmare.
The proposed road tax would be measured through GPS data that measures distance traveled. Motorists would also be charged more for using congested areas in an attempt to reduce traffic.
The government has been collecting less fuel duty, which accounts for 2% of the total tax collected. Electric cars are not charged fuel duty for the electricity they use.
“What we’re proposing is a system to basically reform how driving is taxed so that everyone starts paying again,” The Resolution Foundation said in its report, as reported by The Telegraph.
“At the moment, the people who are not paying this tax are people who have the funds to buy an electric vehicle. That means that not only is this sort of tax base declining, but it’s declining by better-off people opting out.”
The automotive industry experts have warned that the road tax would discourage people from buying electric vehicles. According to RAC Foundation director Steve Gooding, the fluctuating price of electricity is already discouraging people from buying EVs. Increasing the cost of using them and increasing surveillance will likely put people off further.
