‘Pay-As-You-Go’ car tax via GPS tracking recommended by government committee

0

The UK Transport Committee of MPs has recommended that the tax on conventional vehicles be scrapped in favor of a telematics-based road pricing system

'Pay-As-You-Go' car tax via GPS tracking recommended by government committee - News

A fundamental shift in UK motoring may be on the horizon. With the growing uptake of electric vehicles and plans to ban the sale of new combustion cars by 2030, the Treasury faces a £35billion black hole in lost fuel duties and fuel taxes. the vehicles. This gap needs to be bridged one way or another, and the preferred option appears to be road pricing.

The MPs’ Transport Committee made the recommendation in a detailed report released on Friday, to which the government has two months to respond. It describes the use of “telematics technology” which could track when, where and how far you drive. Costs could be ‘dynamic’, with users being charged more for travel at peak times and in generally busy areas. The “type and size of vehicle” would also be taken into account.

'Pay-As-You-Go' car tax via GPS tracking recommended by government committee - News

“Black box” logging systems already exist for insurance policies aimed at young drivers and are controversial due to the sometimes inaccurate data they provide. The report says these products show that consumers are “willing to provide access to data in exchange for efficient services and systems.” It was also suggested that a single unit could provide data for insurance and road pricing payments.

Of that £35billion the Treasury generates each year from motorists, around £7billion is made up of excise duty on vehicles, with the remaining £28billion coming from fuel tax. In total, this accounted for 4% of all tax revenue last year. However, it is not just the missing money that is of concern.

'Pay-As-You-Go' car tax via GPS tracking recommended by government committee - News

Although the initial cost of purchasing an electric vehicle is still high, it is significantly cheaper to operate than an average combustion car. Just a few days ago we noticed that a BMW i4 can do over 250 miles for under £10 when charged at home, despite being as quick as an M3. This drastically reduced automobile cost means increased car use, the government predicts.

“Cheaper driving is likely to lead to more driving,” the report said, adding that in 2018 the Department for Transport predicted a 51% increase in traffic between 2015 and 2050 linked to an increase in the use of electric vehicles. It is hoped that road pricing will prevent this and help the government reach its target of 50% of urban trips being made on foot or by bike by 2030.

'Pay-As-You-Go' car tax via GPS tracking recommended by government committee - News

In addition to privacy concerns, talk of driver tracking will inevitably fuel concerns that Big Brother might also be keeping tabs on how fast you’re driving. In this last report, at least, the speed is not mentioned.

In terms of cost to the average user, the Committee insists that any road pricing system implemented must “be revenue neutral, with most motorists paying the same price or less than they do currently”.

'Pay-As-You-Go' car tax via GPS tracking recommended by government committee - News

Commenting on the report, RAC road policy officer Nicholas Lyes said that according to the organisation’s research, 45% of drivers think a ‘pay per kilometer’ setup ‘would be fairer than the current scheme “. He added:

“However a new charging system looks, the most important thing is that it is simple and fair for drivers of conventional and electric vehicles. Ministers should also consider setting aside a significant portion of revenue to reinvest in our road and transportation network.

Share.

About Author

Comments are closed.