New policy on motoring tax needed to reflect changes to travel

A new BVRLA report, contributed to by industry representatives, is calling for a new policy on motoring taxation to reflect the rise of electric and connected vehicles, and increase of shared transport.

Nine organisations representing economists, fleets, motorists, the automotive industry, energy providers, and local government contributed to the report: Road to Zero: time to shift gear on tax.

The report warns of the impending decline in revenues from the current CO2 emissions-based regime and highlight the potential for a new tax system that could help tackle devolved transport priorities including urban air quality and congestion.  

The report finds that New technologies present an opportunity to develop a fairer and more sophisticated tax system that could be based on distance travelled, time of journey, location or air pollution.

The report also says that Government taxes and incentives need to give fleets and motorists a clearer and more consistent long-term message that investing in plug-in electric vehicles will bring economic benefits.

It also points out that The way we are driving is changing – from ownership to shared use – and the tax system needs to keep up.

Building on the report, most of the contributors have also co-signed a letter to the Chancellor, calling on the government to: Commission an independent and wide-ranging review into the modernisation of the motoring tax system for a zero-emission future.

The new system must Focus on delivering a fair, transparent and adaptable national motoring tax regime capable of funding the UK road network and driving behaviour change that reduces congestion and air pollution.

Develop a national road-user charging policy that can support cities and regions if they choose to implement local motoring charging schemes.