Currently reading: MPs call for road use tax to replace fuel and excise duty

As EVs replace petrol and diesel cars, MPs raise concerns about the impact on public finances

The Commons Transport Select Committee has called on the government to look at new taxes as people switch out of petrol- and diesel-powered cars, suggesting a tax based on miles travelled.

This would use “telematic technology” to charge drivers according to distance driven, vehicle type and congestion. The committee called on the government to start an honest conversation with the public, saying that new taxes must entirely replace the existing set-up, rather than being in addition to, and also be revenue neutral. Motorists should pay “the same or less than they do currently”.

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