CBT Proposes 'Pay-as-you-drive' Levy for Zero-Emission Vehicles
Campaign for Better Transport (CBT), a British charity, has proposed a novel solution to address the declining fuel duty revenue due to the increasing adoption of zero-emission vehicles (ZEVs). The organisation suggests a simple per-mile charge on ZEVs, dubbed the 'pay-as-you-drive' levy.
CBT estimates that fuel duty revenue will drop by a significant £5bn annually by 2033, as more drivers switch to petrol and diesel-free vehicles. To mitigate this, the charity proposes a fair and straightforward solution: a pay-as-you-drive levy.
CBT's research reveals that 65% of the British public agrees with this approach, acknowledging that ZEV drivers should contribute to road maintenance and infrastructure, albeit at a lower rate than conventional vehicle drivers. The charity leads a 'Pay-as-you-drive Forum' comprising 37 organisations that support this Treasury move on vehicle taxation for ZEVs. However, it's important to note that CBT suggests exempting existing ZEV drivers to incentivise uptake before the implementation date of the new levy.
CBT's proposal aims to address the declining fuel duty revenue in a fair and efficient manner. The pay-as-you-drive levy on ZEVs, supported by a majority of the British public and various organisations, could help maintain road infrastructure and ensure that all drivers contribute to its upkeep, regardless of their vehicle's emissions.
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