VAT and Duty on fuel is currently £35-40bn pa.
As EV usage increases this will decline and the government will need to replace it. They could simply increase National Insurance or Income Tax, but I suspect motoring will be the target to:
- encourage other forms of transport - public, walk, bike etc
- recognise the cost to society of roads and other societal costs of transport
The only real question is how they collect the tax - most likely a cost per mile charge using sensors linked to GPS data or possibly road sensors. The only issues are whether it is flexed depending on time of day, type of road, type/size o vehicle, whether there is a tax free annual mileage allowance, etc.
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