Car tax changes could force drivers to ‘see their families less’ due to heavy costs

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Car tax updates mean that road users could be forced to pay over £500 to visit their family under drastic new proposals. Under the changes, drivers would need to pay for every mile they drive under rather than a standard fee.

But an expert has warned that the cost could sit around 75p per mile which would see a 400-mile trip costing over £500 in a cataclysmic cost for poorer families.

Rishi Sunak is said to be considering new road pricing proposals which would see a mileage-based system adopted to fill a government budget hole.

Richard Alvin, director of Capital Business Media which includes electric car firm EV Powered has warned those who spend a lot of time on the road would be most affected.

He said the new charge would see drivers paying ”substantially more” to use their cars rather than simply filling their car with petrol or diesel fuel.

READ MORE: New road tax scheme will affect the ‘poorest in society’

Speaking to, Mr Alvin said: “Whilst there is every sympathy for the Chancellor, these proposed changes will see families seeing their extended families less and putting tradesmen out of work as companies simply won’t be able to afford to use their vehicles.”

He added: “In all honesty, I think it’s the small businesses, self-employed drivers or salespeople who spend a lot of time on the road, and the poorest motorists who will be affected the most.

“It is unclear what the per-mile charge will be, but early suggestions are that it could be around the same as fuel duty for similar mileage meaning a 75 pence per mile charge could result in a family visit to Yorkshire from London – a round trip of 400 miles – costing £533.

“[This] is substantially more than the equivalent cost of filling up with petrol for the same journey.

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“There are rumours circulating that things such as charges to employers who offer free parking for their employees will be introduced, and more charging zones across the UK.

“I think the biggest impact all of these will have is that unnecessary travel will decrease.

“I expect people will find it more difficult to cope with the costs of running a car, whether that be electric or petrol.”

The Treasury has warned that the government faces losing £40billion with the launch of electric cars due to a loss of fuel duty and Vehicle Excise Duty car tax.

This new system will see cars installed with telematics devices to track mileage to calculate overall fees.

This means that the government can continue getting tax from motorists even when the vast majority have switched to electric cars.

The idea has been attacked by many campaigners with experts warning that the system could be unfair to many drivers especially those in rural areas.

Plans for the scheme are understood to be in the development stages but are not expected to be introduced immediately.

Mr Alvin says he expects there to be a change in the way car tax is calculated which would not be a “positive” update for the motorist.

He told “Fuel duty is charged at 57.95p a litre on petrol and diesel vehicles and is on course to raise £27.5 billion this financial year, equivalent to 1.3 per cent of national income, according to latest forecasts.

Vehicle excise duty, which is charged on the purchase of cars based on the level of emissions, will raise £7.1 billion, while VAT on fuel is worth £5.7 billion.

If the pay per mile charge does come in and we see the number of motorists on the road declining, this income will significantly reduce.

“I expect that we will see a change in the way car tax is calculated in the coming years – not a positive one either.”

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