Pay-per-mile: A Solution for EV Tax Equity in the UK

The UK aims to achieve net zero by 2050, investing heavily in electric vehicles (EVs) to cut road traffic emissions. By July 2024, nearly 2 million EVs were on UK roads. However, EV drivers neither pay fuel taxes nor road taxes, leaving a GBP 35 billion gap in government revenue. Concurrently, the UK plans significant transport infrastructure investments.

Tim Wray, a mobility expert at Kapsch TrafficCom, suggests a pay-per-mile system to distribute these costs more equitably. This system charges based on distance traveled, vehicle type, and emissions, ensuring fair contribution from all road users. High-frequency users would pay more, while occasional users would pay less.

As EV numbers surge, implementing a pay-per-mile system now is crucial. "The time to act is now," urges Wray, emphasizing the need to address the fuel tax revenue shortfall to support infrastructure upkeep.