The Tony Blair Institute (TBI) is urging chancellor Jeremy Hunt to introduce an electric vehicle road tax to avoid the country becoming “gridlock Britain”.
As reported by the Telegraph, TBI senior policy adviser James Browne said: ““This [road tax] needs to happen urgently, before too many people buy electric vehicles on the basis that they will not be taxed, making it impossible to introduce it later.”
Currently, EV motorists are exempt from paying a fuel duty. Browne also warned that as fuel duty is “fading” as a source of revenue as drivers opt for electric cars, “the government needs to set out a plan for moving towards road pricing as soon as possible.”
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From April 2025, EV owners will be required to pay Vehicle Excise Duty as their petrol and diesel counterparts do
A Treasury spokesperson said: “We are making sure that motoring tax revenues keep pace with the switch to electric vehicles, while keeping it affordable for consumers, and have no plans to introduce road pricing.
“With the electric vehicle transition accelerating, it’s right that all drivers start to make a fair tax contribution through changes to Vehicle Excise Duty while we’re also supporting through over £2.5 billion in incentives.”
