Electric vehicle owners may have to pay tax under new Government plans which could be announced within days, according to reports.
The Government is looking at a number of huge cuts and tax hikes as well as new taxes to plug a £50billion hole in the budget. The move could be announced by Chancellor Jeremy Hunt in his Autumn Statement within days, WalesOnline reports.
The Government is also set to lose billions of pounds every year as people switch to electric cars – meaning they will pay neither Vehicle Excise Duty (VED) ‘road tax’ nor duty on petrol and diesel. It has been estimated that will cost the Government £35billion a year.
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A Whitehall source told the Telegraph it was now inevitable that electric vehicles would be taxed at some point – and it is believed electric vehicle owners may have to start paying Vehicle Excise Duty like everyone else in 2025.
The Government is also looking at charging all drivers per mile to raise taxes.
The Government previously guaranteed that electric vehicles would remain exempt from road duty until at least 2025. A ban on the sale of new petrol and diesel vehicles comes into force in the UK in 2030.