Pay-per-mile is perfect tool to ensure fuel tax equity for drivers

EQS-Media / 05.09.2024 / 08:15 CET/CEST

 7. EVs are ripping GBP 35 billion hole in UK budget
 8. If done right, pay-per-mile system could be more equitable than simply
subsidizing EVs

London, September 5, 2024 – The UK has set itself ambitious goals of
reaching net zero by 2050, and is investing heavily in EVs (Electric
Vehicles) – as reducing road traffic emissions is one of the key levers to
reaching net zero.
EV numbers are increasing, amounting to almost 2 million vehicles on the
road by July 2024. However, motorists switching to EVs are no longer
paying fuel taxes and they are exempt from road tax, leaving a GBP 35
billion hole, or about 4% of total yearly tax revenue, in government
financing. At the same time, the UK government plans heavy transport
infrastructure investment.
“As EVs do not pay fuel tax or road tax, they are basically exempt from
contributing to the upkeep of public roads, and also to general tax
revenue. A well-calibrated pay-per-mile system could be a simple way of
spreading these costs equitably and not just have other drivers cover the
share of those who can afford an electric vehicle,” explains Tim Wray,
mobility expert at Kapsch TrafficCom.
What is a pay-per-mile system?
A pay-per-mile system considers the distance travelled by motorists in
their vehicles, as well as the type and emissions status of vehicles, and
applies charges accordingly. That way, heavier road users pay their fair
share, while less frequent users pay less.
Depending on the configuration, modern pay-per-mile systems can also be
used to regulate traffic in sensitive areas, for example around schools or
hospitals, and reduce traffic volume during peak traffic hours.
Differential pricing, where motorists are incentivised to align their
usage with transport policy, has been proven to influence customer
behaviour in many industries already, such as public transport.
Time to act is now
While EV sales are soaring, the total number of electric vehicles on the
road is still comparatively small. This means that coupled with the
existing subsidies, a pay-per-mile system aimed at those that do not pay
fuel tax could be introduced comparatively easily. But in a few years this
will no longer be possible, so the time to act is now.
“In order to fully commit to the electric future and finance
infrastructure upkeep, the fuel tax revenue question needs to be urgently
addressed,” urges Tim Wray.
“The technology is already available and being used in countries around
the globe, but the window for opportunity for an introduction in the UK is
closing fast. We need to act now, or we will face increasing revenue
pressures. Four per cent of yearly tax revenues cannot simply be ignored,”
Wray concludes.
More information: [1]Press | Kapsch TrafficCom
Sandra Bijelic 
Head of Corporate Communications 
Kapsch TrafficCom AG 
Am Europlatz 2, 1120 Vienna, Austria 
P +43664628 1720 
[2]sandra.bijelic@kapsch.net 

 

End of Media Release

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Issuer: Kapsch TrafficCom AG
Key word(s): Traffic

05.09.2024 CET/CEST This Press Release was distributed by EQS Group AG.
www.eqs.com

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Language: English
Company: Kapsch TrafficCom AG
Am Europlatz 2
1120 Vienna
Austria
Phone: +43 50811 1122
Fax: +43 50811 99 1122
E-mail: ir.kapschtraffic@kapsch.net
Internet: www.kapschtraffic.com
ISIN: AT000KAPSCH9
WKN: A0MUZU
Listed: Vienna Stock Exchange (Official Market)
EQS News ID: 1981777

 
End of News EQS Media

1981777  05.09.2024 CET/CEST

References

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1. https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=b5bf3e698fa1c07db35ced7183c1a50c&application_id=1981777&site_id=apa_ots_austria~~~18b544d0-9c71-4160-bd95-cc8b9aff9fbf&application_name=news
2. sandra.bijelic@kapsch.net

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