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The Independent UK
The Independent UK
Sean O'Grady

Why Rachel Reeves could impose pay-per-mile tax on electric vehicles in Budget

Electric vehicle sales could decline if a new tax is imposed - (PA Archive)

Reports suggest Rachel Reeves and her officials are giving serious consideration to a “pay per mile” system of tax on battery electric vehicles (BEVs).

The idea has already been described by the AA as a “poll tax on wheels” and does not, at first glance, seem entirely consistent with the push for net zero and electrification of our vehicles. In reality, as with so many other of her difficult choices on tax, Reeves probably has no alternative but to press on…

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