Sheffield news Radical change to tax could force families to 'see each other less' MetiNews.Com
MetiNews.Com - Government revenue raiser could make motorists travel less and force professional drivers 'out of business'
Breaking News ! A proposed change in how car tax is raised could force drivers to travel less. Under the radical plans, drivers would pay per mile driven rather than paying vehicle excise duty (VED), often incorrectly referred to as 'road tax'. The drastic proposal aims to plug a government revenue shortfall as more motorists switch to electric vehicles which are exempt from VED. But the plan could vastly reduce the number of journeys people make for family engagements, leisure and business. Those who spend the most time on the road will be most affected Richard Alvin, director of Capital Business Media which includes electric car firm EV Powered, told Express.co.uk. Mr Alvin warned drivers could end up paying "substantially more" in tax per mile than they would in fuel costs. Read More Related Articles Strictly Come Dancing fans fuming as Nicola Adams left out while Katya Jones is back on screen Read More Related Articles Rishi Sunak hints England's 10pm pub curfew will end on December 2 He said: “Whilst there is every sympathy for the Chancellor, these proposed changes will see families seeing their extended families less and putting tradesmen out of work as companies simply won’t be able to afford to use their vehicles.” He added: “In all honesty, I think it’s the small businesses, self-employed drivers or salespeople who spend a lot of time on the road, and the poorest motorists who will be affected the most. "It is unclear what the per-mile charge will be, but early suggestions are that it could be around the same as fuel duty for similar mileage meaning a 75 pence per mile charge could result in a family visit to Yorkshire from London – a round trip of 400 miles - costing £533. “[This] is substantially more than the equivalent cost of filling up with petrol for the same journey. "There are rumours circulating that things such as charges to employers who offer free parking for their employees will be introduced, and more charging zones across the UK. "I think the biggest impact all of these will have is that unnecessary travel will decrease. “I expect people will find it more difficult to cope with the costs of running a car, whether that be electric or petrol." The Treasury has warned that the government faces losing £40bn with the launch of electric cars due to a loss of fuel duty and VED. This new system will see cars installed with telematics devices to track mileage to calculate overall fees. This means that the government can continue getting tax from motorists even when the vast majority have switched to electric cars.
. Plans for the scheme are understood to be in the development stages but are not expected to be introduced immediately. Mr Alvin says he expects there to be a change in the way car tax is calculated which would not be a “positive” update for the motorist. He told Express.co.uk: “Fuel duty is charged at 57.95p a litre on petrol and diesel vehicles and is on course to raise £27.5bn this financial year, equivalent to 1.3 per cent of national income, according to latest forecasts. Vehicle excise duty, which is charged on the purchase of cars based on the level of emissions, will raise £7.1bn, while VAT on fuel is worth £5.7 billion.
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If the pay per mile charge does come in and we see the number of motorists on the road declining, this income will significantly reduce. “I expect that we will see a change in the way car tax is calculated in the coming years – not a positive one either."
Source = MetiNews.Com