Phil H
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From the Beeb:
The UK needs to create a new motoring tax to plug the revenue gap as drivers switch to electric cars, MPs have said.
The government should tax motorists based on miles travelled as the use of petrol and diesel vehicles decreases, the Transport Select Committee said.
If no action is taken this year, the UK faces a £35bn "black hole" in its finances, they said.
The Treasury said tax revenues would keep pace with changes prompted by electric vehicle take-up.
Sales of new petrol and diesel cars and vans will be banned in the UK from 2030 and sales of electric cars are already soaring.
Taken together, vehicle excise duty - better known as "car tax" - and fuel duty that motorists pay at the pump, raise around £35bn a year, but neither tax is levied on pure electric vehicles.
The committee warned there is likely to be no revenue from existing tax sources by 2040.
The UK needs to create a new motoring tax to plug the revenue gap as drivers switch to electric cars, MPs have said.
The government should tax motorists based on miles travelled as the use of petrol and diesel vehicles decreases, the Transport Select Committee said.
If no action is taken this year, the UK faces a £35bn "black hole" in its finances, they said.
The Treasury said tax revenues would keep pace with changes prompted by electric vehicle take-up.
Sales of new petrol and diesel cars and vans will be banned in the UK from 2030 and sales of electric cars are already soaring.
Taken together, vehicle excise duty - better known as "car tax" - and fuel duty that motorists pay at the pump, raise around £35bn a year, but neither tax is levied on pure electric vehicles.
The committee warned there is likely to be no revenue from existing tax sources by 2040.
Fuel and excise duty must be replaced with new tax, MPs say
The UK will be left with a £35bn "black hole" as motorists switch to electric cars, says Transport committee.
www.bbc.co.uk
