Experts propose way forward for motoring taxation post-2040

Road pricing, general taxation of electricity and taxing supply and demand are all ways to raise money from private motorists with electric vehicles (EV) post-2040, according to Stephen Cirell and Geraint Lewis.

On 17 July, Cirell, an independent consultant specialising in local authority renewable energy projects, and Lewis, Chairman of Bow Draper, wrote a blog for Current+ examining how the government could “solve the riddle” of EV taxation. The pair drew on a report from the BVRLA, Road to Zero – Time to Shift Gear on Tax, which called for government to urgently address the issue of motoring taxation as EVs replaced petrol and diesel cars.

The authors explained that road pricing, which would see a road user charged price per mile based on the use of a designated highway, had proven unpopular in the UK while a general taxation of electricity would be unfair on those without EVs and electricity not being used for road transport. They suggested the most likely option would be a system applying specific taxation of electricity for road vehicles, with their preferred choice being one where charge is based on the kWh a car has been supplied with from a particular source. It has the advantages of the technology being in existence to operate it and of it being the most fair in nature. 

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