Per-mile EV tax is just the first stop on the road to vehicle taxation reform | Letters

Taxing EVs on the amount of electricity they use is fairer than the per-mile system outlined in the budget, writes Edward Leigh, while David Abrams reckons EV owners are being penalised for trying to do the right thing

The announcement in the budget of the introduction of a per-mile tax on electric vehicles is an important start to reforming vehicle taxation to be fairer (Report, 26 November). But it is only the first step towards making it an effective tool to reduce traffic congestion and carbon emissions.

I provided written and oral evidence to the 2021 Commons transport committee’s inquiry into road pricing and have led a focus group on how it could be made acceptable to the public. Although a per-mile charge is relatively simple to administer, taxes on fuel are fairer because they vary with the weight and efficiency of the vehicle. These are relevant because they determine external costs, such as the rate of road wear, severity of harm caused in collisions, and carbon emissions. A tax on energy usage captures these external costs better than a tax on mileage.

Continue reading...