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Electric Cars – fuel duty and road tax: how to replace £35B annual revenue

carwow.co.uk

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Re: Electric Cars – fuel duty and road tax: how to replace £35B annual revenue

#51

Post by analog31 »

matsemann wrote: post #2

There is no "road tax" in the UK, is it? It's a fee for polluting, not using the road. I hate that it's being used as an argument against cyclists: "get off the road, you don't pay road tax". This of course also ignores that most adult cyclists also own a car.. Norway have the same issues now. Almost all new cars are electric. You don't pay purchase tax / vat when buying it. Pay less on toll roads. Cheaper to use. Et…

>>>> I hate that it's being used as an argument against cyclists: "get off the road, you don't pay road tax". This of course also ignores that most adult cyclists also own a car.

Indeed, here in the states, cyclists pay for the roads that we use. For instance most local roads in cities and counties are paid for with property taxes. Income taxes cover a fair amount of road construction. The county bike paths have a fee. We're not allowed to ride on the Interstates, and we tend to avoid "big" roads for safety / comfort reasons.

My hunch is that if one were to look closely at the funding of roads, one would find that they represent a net subsidy for heavy trucking.

Re: Electric Cars – fuel duty and road tax: how to replace £35B annual revenue

#52

Post by srg0 »

I don't see a problem replacing fuel duty with an energy tax. Make it progressive. Let say the first 3000 kWh per year are priced at residential rate, apply higher rate above that. Households without a car will pay the same price as before. EV owners will pay a tax proportional to car usage.

Re: Electric Cars – fuel duty and road tax: how to replace £35B annual revenue

#53

Post by arethuza »

smackay wrote: post #20

The UK Government currently spends around £11 billion on roads, https://www.statista.com/statistics/298667/united-kingdom-uk... so the excess is a handy revenue stream which clearly it would lothed to give up. That means the real opportunities with the switch to electrifying transportation, like moving freight traffic to rail will not be seized as that would entail even more spending. Instead we are stuck with the pr…

I wonder about council spending on roads and spending by the devolved governments - are they included in that total?

Re: Electric Cars – fuel duty and road tax: how to replace £35B annual revenue

#54

Post by jacobp100 »

I’d like to see a parking tax. Currently if you go to the supermarket, it probably has a car park, which is paid for by all customers - including those without cars. Having a minimum cost to parking - through VAT or just a minimum fee a company has to charge - would make people reconsider their car use

Re: Electric Cars – fuel duty and road tax: how to replace £35B annual revenue

#55

Post by osrec »

Perhaps if the UK government more competently spent it's money, it wouldn't need to replace the lost revenue.

The NHS track and trace app, which cost around GBP 40 billion, is an absolute sham.

I've worked with NHS trusts that are paying GBP 500 for each lightbulb replacement in a hospital, GBP 200 for a ream of paper, amongst other things.

The UK also rakes a significant amount from national insurance and income tax.

You can't just keep on taxing as a way to grease the wheels of an inefficient government machine. I bet if someone was to clean up the junky contracts that corrupt MPs have lumbered us with, we'd comfortably save more than GBP 35 billion a year.

Re: Electric Cars – fuel duty and road tax: how to replace £35B annual revenue

#56

Post by lettergram »

JumpCrisscross wrote: post #25
lettergram wrote: post #23

Earlier quoted context omitted.

Lol assuming inflation is caused by an increased money supply; not the material food shortage we are seeing. Further, this type of taxation is a regressive tax.

> assuming inflation is caused by an increased money supply; not the material food shortage we are seeing Doesn’t matter. Fiscal taxation (spending) reduces (increases) aggregate demand directly. No need for monetary transmission channels.

Except this taxation is supposedly going directly to spending on regular road maintenance. Which injects the funds directly back into the economy. Money supply isn’t changing here.

Even if it were, demand isn’t being reduced. They’re just forcing you to spend it on roads.

Re: Electric Cars – fuel duty and road tax: how to replace £35B annual revenue

#57

Post by rcMgD2BwE72F »

srg0 wrote: post #52

I don't see a problem replacing fuel duty with an energy tax. Make it progressive. Let say the first 3000 kWh per year are priced at residential rate, apply higher rate above that. Households without a car will pay the same price as before. EV owners will pay a tax proportional to car usage.

If we revamp the fuel duty tax, why not introduce a carbon tax to pay for the impact of CO2 emissions on climate? This would make the fuel duty tax insignificant (the cost of climate change is more or less infinite now, given the current trends).

Then, we can rethink the whole system and realize road-based transportation with private cars is not sustainable. And then, we can forget about fuel duty / energy tax because we have whole societies to redesign :)

Re: Electric Cars – fuel duty and road tax: how to replace £35B annual revenue

#58

Post by MafellUser »

Completely absence from this are the loss due to lower Benefit in Kind (BIK) for Electric vehicles, and First Year Allowances for EV purchases. Driving an EV means only paying 1-2% per year tax compared to 30-40% for a locally polluting vehicles. First Year allowances mean you claim back 100% of the cost of the EV to offset any taxable income.

These business rates mean owning an EV outright as a normal employee is very dumb. Would you rather pay £300 per month for a PCP on a Zoe, or £150 a month for a Taycan as a company car?

Re: Electric Cars – fuel duty and road tax: how to replace £35B annual revenue

#59

Post by techterrier »

blibble wrote: post #50
techterrier wrote: post #38

Earlier quoted context omitted.

commonly used by people who disingenuously use it's etymology to imply that all 'road users' (by which they mean cyclists) rather than 'vehicle users' should pay it

I don't see anything in the article that suggests the author wants that to happen? these hysterical responses say more about you then the people you're demonising

I dont think a carsalesman is going to feel overly demonised by being reffered to as part of the car lobby. He does know better than to conflate road and vehicle tax however.

Re: Electric Cars – fuel duty and road tax: how to replace £35B annual revenue

#60

Post by throwaway0a5e »

analog31 wrote: post #51
matsemann wrote: post #2

There is no "road tax" in the UK, is it? It's a fee for polluting, not using the road. I hate that it's being used as an argument against cyclists: "get off the road, you don't pay road tax". This of course also ignores that most adult cyclists also own a car.. Norway have the same issues now. Almost all new cars are electric. You don't pay purchase tax / vat when buying it. Pay less on toll roads. Cheaper to use. Et…

>>>> I hate that it's being used as an argument against cyclists: "get off the road, you don't pay road tax". This of course also ignores that most adult cyclists also own a car. Indeed, here in the states, cyclists pay for the roads that we use. For instance most local roads in cities and counties are paid for with property taxes. Income taxes cover a fair amount of road construction. The county bike paths have a fe…

>My hunch is that if one were to look closely at the funding of roads, one would find that they represent a net subsidy for heavy trucking.

Which is itself a net subsidy for all sorts of other economic activity.

It's subsidies all the way down.

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