Certain drivers could be targeted with pay per mile charge to replace fuel duty fees

Some drivers could be hit with new pay-per-mile car tax fees under new suggestions outlined by specialists.

The Campaign for Better Transport has called for the introduction of a new per mile charge for electric vehicle owners to plug a major gap in public finances.

Petrol and diesel owners pay fuel duty charges at the pump with revenues expected to significantly drop as more drivers switch to EVs.

Silviya Barrett, Director of Policy and Campaigns at the Campaign for Better Transport, admitted a new pay-per-mile charge would charge just enough to replace former fuel duty charges.

Speaking to Express.co.uk, she said: “VED are being introduced for electric vehicles from next year but the main source of revenue from vehicle taxes is fuel duty.

“And there is nothing that has replaced fuel duty for electric vehicles and that is where the main gap is.

“As the increase for electric vehicles on the road grows, the bigger the gap will be if they pay no per mile tax as well on usage.

“What we are planning for is a per mile tax for electric vehicles that will basically make sure that the revenue for fuel duty remains broadly the same.”

The RAC Foundation has previously claimed that income from fuel duty was £28billion back in 2019 with £16.4billion contributed from 32.9 million cars.

However, analysis from the group suggested fuel duty income could drop to just £11.4billion by the middle of 2028.

This would be a staggering £5billion or 30.5 percent reduction in what will be a major concern for policymakers.

A recent poll from the Campaign for Better Transport found there was widespread support for the introduction of pay-per-mile charges for electric vehicle owners.

A total of 65 percent of respondents said EV drivers should pay tax charges like petrol and diesel motorists.

Silviya added: “The Treasury has already said they are looking to make sure vehicle taxes keep in line with net zero.

“So as more electric vehicles are introduced they want to make sure the revenue from vehicle taxes remain broadly the same.

“The only way that can happen is if electric vehicles pay their fair share, or their drivers rather.”