Martin Lewis gives money-saving advice on VED car tax
The motoring specialist has hinted tax charges should be the same for electric vehicle owners as those with petrol and diesel cars. This would be more important over the next decade as more drivers make the switch to electric models ahead of a 2030 petrol and diesel sales ban.
Electric car owners are currently exempt from traditional Vehicle Excise Duty (VED) charges which are based on overall vehicle emissions.
Those who own electric cars do not need to pay city congestion fees and don’t pay traditional fuel duty charges.
Speaking exclusively to Express.co.uk, Mr Freeman said electric car owners were “blind and deluded” if they thought they should continue to be exempt from tax going forwards.
He warned electric cars would eventually be taxed the same as traditional cars when sales started to rise.
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He said: “They are blind and deluded. The moment everybody is in electric cars or the majority are in electric cars they are going to be taxed because the government needs to use the revenue.
“Electric cars cause pollution in their production and in their disposal.
“Their tyres and brakes cause pollution and they use the roads and they churn up the road surface etc… so why shouldn’t they contribute.
“If they believe they are going to get away with this tax-free it ain’t going to happen. It’s just not going to happen.
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“There is a huge problem. The government in my view needs to say anyone who uses a car needs to pay a levy or tax.”
Car tax changes are reportedly being considered after the Treasury warned the switch to electric cars could lead to a loss of £40billion in public spending.
This was solely down to a loss of traditional VED and fuel duty charges as a result of less petrol and diesel cars on the road.
Campaigners such as the UK Energy Research Centre (UKERC) are pushing for a 50 percent purchase tax to be introduced to petrol and diesel cars from 2021.
This would be slowly introduced on a sliding scale with the most polluting cars taxed form year one.
This would continue until just fully electric zero-emission cars were tax-exempt by 2030.
However, the Chancellor is considering a pay per mile road pricing system but Mr Freeman has warned against this method.
Mr Freeman said this would be “fraught with problems” as he pushed for a traditional taxation policy charging drivers for filling up regardless of their fuel type.
He told Express.co.uk: “It should be taxed at the source of the energy, not on the mileage as that is fraught with problems.
“It should be if you fill up 10 times a year there’s a tax on it.
“In the same way we have petrol duty, we have duty on fuel now.
“We just need to maintain duty on fuel whatever that is and if it’s electric fuel then so be it.”
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