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What is the proposed pay-per-mile scheme for electric vehicles?
The proposed pay-per-mile scheme aims to charge electric vehicle owners based on the number of miles they drive. This initiative is suggested by the Campaign for Better Transport to counteract a projected £5 billion tax revenue shortfall as traditional fuel duties decline. The scheme would ensure that all drivers, including those with zero-emission vehicles, contribute fairly to vehicle taxation.
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How will this affect electric vehicle owners in the UK?
Electric vehicle owners in the UK may see changes in how they are taxed under the proposed pay-per-mile scheme. While it could lead to a more equitable taxation model, it may also introduce additional costs for drivers who previously benefited from lower or no fuel duties. The overall impact will depend on the specific rates set and how the scheme is implemented.
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What are the potential benefits and drawbacks of this taxation model?
The potential benefits of the pay-per-mile scheme include a fairer taxation system that accounts for all drivers, regardless of vehicle type. It could also incentivize the use of electric vehicles by ensuring that traditional fuel users contribute to road maintenance. However, drawbacks may include increased costs for electric vehicle owners and concerns about privacy and tracking mileage.
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How does this proposal address the decline in traditional fuel duties?
The pay-per-mile scheme directly addresses the decline in traditional fuel duties by creating an alternative revenue stream for the government. As more drivers switch to electric vehicles, fuel duty revenues are expected to decrease significantly. This proposal aims to fill the financial gap and ensure that the Treasury continues to receive necessary funds for road maintenance and infrastructure.
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What is the public opinion on the pay-per-mile scheme?
Public opinion on the pay-per-mile scheme appears to be generally supportive, according to the Campaign for Better Transport. Many people recognize the need for a fair taxation model that includes all drivers. However, there may be political challenges in implementing such a scheme, as road pricing has historically been a contentious issue.