UK Faces £10 Billion Revenue Shortfall as Electric Car Sales Soar, Think Tank Recommends New Tax
The transition to electric cars in the UK will lead to a £10 billion shortfall in taxes, as fuel duty and vehicle excise duty are not paid on electric cars.
The Resolution Foundation, a think tank aimed at improving the standard of living for low and middle-income families, recommends a new tax to prevent the loss of public revenue.
The report finds that the incentives to switch to electric cars outweigh any new taxes for potential owners, as operating costs are significantly lower than traditional vehicles.
The report also suggests reducing VAT on public electric car charging points, which are mostly used by less well-off households, while richer people are more likely to have home charging points.