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The government has pledged to ban all diesel and petrol cars and vans by 2030 – meaning all new vehicles will be electric.

A gain for environment, a loss for economy

This is great news for the future of the environment and the climate. The long-term electric vehicle tax savings are under threat as governments start to assess the shortfall in revenue from lost fuel duty and road tax.

Motor vehicle taxation is worth €440.4 billion annually in 14 major European markets, of which more than half (€222bn) is duty and VAT on fuels and lubricants, according to the ACEA. The same governments raise a further €41.9bn in annual vehicle ownership taxes.

This means a huge hit to the economy in the UK alone, and with governments already facing a huge dip in finances due to COVID-19, they are under pressure to find a way to make the money back with electric vehicles.

Pay as you drive

Huw Merriman MP, Chair of the Transport Committee, has said a pay-as-you-drive scheme could offer a solution.

This system is already used in some European countries, so it may be that the government can look at what worked well and what didn’t.

These schemes can also help reduce congestion as people decide to walk and cycle where they can.

It will be interesting to see what happens in the future.

For the time being, though, you can still purchase your vehicle tracking devices through us for petrol, diesel, and electric.

 

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