Now is not the time for pay-per-mile tax on EVs, says SMMT

The head of the UK car manufacturer’s association Mike Hawes has slammed potential moves in today’s Budget statement to introduce pay-per-mile taxes on electric car drivers in a speech made in front of the Government’s secretary of state for business and trade Peter Kyle.

“When you want someone to do something you encourage them, and this is coming just at the wrong time as manufacturer targets [on EV sales] are ramping up,” Society of Motor Manufacturers and Traders chief executive Hawes told the organisation’s annual dinner in London last night. “It's the wrong message at the wrong time. Help us sell more EVs and we will deliver more tax revenues and create new jobs.” 

Hawes said the Government’s deeds have matched its words with the introduction of the zero-emission grant, which “while perfect was exactly the right thing to do”, but the “road pricing announcement had better come with a receipt”, because they’re going to want to return it.

The grant, which gives discounts of either £1,500 or £3,750 depending on car eligibility, has seen a big spike in interest in electric cars, with non-eligible manufacturers introducing their own deals to match those available from other brands. Auto Express has rounded up the latest deals on electric cars available through our Buy a Car service. 

But Hawes is concerned that the mooted 12p per mile charge for driving electric cars by the end of the decade, to balance out the loss of fuel duty revenues for HM Revenue & Customs, would send a damaging message to consumers at a time where car manufacturers are struggling to hit escalating targets for the share of electric vehicles that they must achieve within their total  new car sales. 

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