Car tax changes could be ‘scary’ as experts warn some drivers are not be exempt forever

Martin Lewis gives money-saving advice on VED car tax

Under current measures, fully-electric models do not need to pay Vehicle Excise Duty (VED) or fuel duty charges when filling up. Electric candles are also exempt from paying city congestion charges such as the London ULEZ or in many of the new for 2021 Clean Air Zones.

However, Tom Leathes, expert at has warned there will come a point home electric car owners will need to be taxed in the same way as petrol and diesel vehicles.

Speaking exclusively to, Mr Leathes said: “We have to expect electric cars are going to pay road tax.

“It’s currently one in ten cars sold are electric but that’s going to balloon over the next few years.

“Being completely realistic and pragmatic you can’t exempt them forever.

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“But I think from the EV owner point of view that is a little bit scary because you feel like that is one of your big reasons [to switch].”

The Chancellor is said to be considering a new pay per mile road pricing system to replace VED and fuel duty charges in the coming years.

The new scheme could charge drivers between 75p and £1.50 per mile instead of basing costs purely on vehicle emissions.

It has yet to be confirmed whether any new system would also affect electric car owners.

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However, the Treasury suggested the scheme after concerns over a £40billion budget hole caused by the switch to electric vehicles.

The Department for Transport (DfT) said they would “need to ensure” revenue from motoring taxes continued to keep pace with road updates.

The DfT said the Government was committed to achieving net-zero emissions and facilitating a transition to electric vehicles.

They added any changes to the current tax system would be considered by the Chancellor and announced in due course.

Any updates could be a hammer blow to electric car owners with no road tax charges a major selling point from firms.

However, Mr Leathes said there were still “lots of reasons” to consider switching to electric vehicles despite the concerns over a refreshed tax system.

He told “Yes the road tax might hit EV owners in due course but there’s still lots of reasons to go EV just purely to go for health of your wallet point of view.

“I think we should be realistic and expect road tax will hit EV owners but that won’t eat up all of the good financial reasons for making a shift.”

Last month the Department for Transport (DfT) said the new green number plate initiatives could unlock a range of benefits for drivers.

They said the new plates would help drivers benefit from local-based initiatives such as cheaper parking and cost-free entry into zero-emission zones.

Owners will also benefit from using electric-only parking spaces in city centres with guaranteed charging stations.

Transport Minister Rachel Maclean said: “Not only will green number plates raise awareness of the increasing number of cleaner vehicles on our roads, they could also unlock a number of incentives for drivers.

“It’s clear there has never been a better time to make the switch to a zero-emission vehicle.”

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