Pay-as-you-drive vehicle taxation.

[chowbenter]

I've been reading the future car taxation proposals by the 'Centre for policy studies' pdf. Some interesting changes on the horizon.
Everybody will be paying different amounts of pay-as-you-drive taxation as you will be given a certain free mileage allowance linked to your postcode with more allowance going to car drivers who live in the countryside with poor or no public transport, there will be a flat rate per mile mileage charging to be collected monthly or longer periods by direct debit, There will be congestion pricing as to when & where you drive, Fuel duty to stay in place & ZEV's & hydrogen fuel cell vehicles will pay significantly less than petrol & diesel cars.


One paragraph popped out

.... "However, another option (advocated by some) is to move everyone over to a per
mile system in one ‘big bang’ moment, replacing fuel duty and vehicle excise duty
entirely. New Zealand provides an example of such a system, albeit on a small
scale. Diesel vehicles in the country are not taxed at the source as petrol drivers
are – rather they must pay through road user charges.While this system targets
larger vehicles over 3.5 tonnes, diesel cars and vans are included as well. Users
are obligated to pre-purchase distance licenses in 1,000km units, with rates varying
based on vehicle type (diesel cars pay NZ$49 per 1,000km for example"


The future of road pricing starts at chapter 4 page 45. https://cps.org.uk/wp-content/upload...OF_DRIVING.pdf

 

[Gomev]

I've been reading the future car taxation proposals by the 'Centre for policy studies' pdf. Some interesting changes on the horizon.
Everybody will be paying different amounts of pay-as-you-drive taxation as you will be given a certain free mileage allowance linked to your postcode with more allowance going to car drivers who live in the countryside with poor or no public transport, there will be a flat rate per mile mileage charging to be collected monthly or longer periods by direct debit, There will be congestion pricing as to when & where you drive, Fuel duty to stay in place & ZEV's & hydrogen fuel cell vehicles will pay significantly less than petrol & diesel cars.


One paragraph popped out

.... "However, another option (advocated by some) is to move everyone over to a per
mile system in one ‘big bang’ moment, replacing fuel duty and vehicle excise duty
entirely. New Zealand provides an example of such a system, albeit on a small
scale. Diesel vehicles in the country are not taxed at the source as petrol drivers
are – rather they must pay through road user charges.While this system targets
larger vehicles over 3.5 tonnes, diesel cars and vans are included as well. Users
are obligated to pre-purchase distance licenses in 1,000km units, with rates varying
based on vehicle type (diesel cars pay NZ$49 per 1,000km for example"


The future of road pricing starts at chapter 4 page 45. https://cps.org.uk/wp-content/upload...OF_DRIVING.pdf

Fuel tax is essentially a pay per mile for ICE, but there is no simple way to apply fuel tax for EVs other than at public charge points. Perhaps the 20% VAT on public charging compared to 5% at home could be considered a crude pay per mile/fuel tax on EVs at the moment.

 

[Gadget Geek]

Fuel tax is essentially a pay per mile for ICE, but there is no simple way to apply fuel tax for EVs other than at public charge points. Perhaps the 20% VAT on public charging compared to 5% at home could be considered a crude pay per mile/fuel tax on EVs at the moment.

Pay per mile could be applied from the mileage reported on the MOT or at the service.

 

[Gomev]

Pay per mile could be applied from the mileage reported on the MOT or at the service.

Quite, relatively straightforward pay per mile but no easy equivalent of fuel tax.
I suspect sales of mileage blockers may increase though

 

[OriginalBigAl]

Maybe the French system may suit better, tax on fuel , higher than UK taxes on electricity, rebates on electricity for the less well off. Higher initial tax on a new car ( one off payment ) if you keep that car 10 years , its cheaper than changing every 3 years. Higher mileage drivers will usually change cars more often. A lower tax on secondhand cars when buying , more tax on luxury and high polluting cars. All calculated and collected and unavoidable when choosing your steed, and a lot cheaper more efficient to collect as its just an addition to existing paperwork. And of course seems a lot fairer to the general population. A high mileage , sorry kilometrage Range Rover owner pays a lot more than a secondhand Twingo commuter /shopper both initially or averaged out over a number of years.
A secondary advantage would be parity on fiscal policy when it comes to re-joining the EU , if I may quote Del Boy " you know it makes sense " .

 

[tsedge]

I would certainly charge poorer people a lower unit rate for electricity and gas (linked to income tax bands and amount of usage) and either abolish or greatly reduce the standing charge.

In terms of charging-by-the-mile, I think that could work but there needs to be a different rate for rural / country and town / city driving, so that rural areas are not disadvantaged.

It would make sense to reduce the cost of motoring for the poorest - zero road tax for cars >7-10 years old, subsidised "no frills" basic insurance and two years between MOT inspections for older cars.

I agree that having costs clear and up-front makes a lot of sense. No problems having new cars more expensive - but I think we need to reduce the distortions in the UK market due to company cars. I'd probably abolish the whole concept, so there aren't tax advantages in having a ridiculously expensive all-frills monster SUV paid for by a business.

 

[Rolfe]

I heard a suggestion that everyone should get a set basic amount of electricity either free or at a very low rate, then usage above this rate was much higher in price. It seemed like a good idea at the time, good for low-income people with no means test, but with the push to move to cleaner electricity from polluting fossil fuels it makes less sense.