The UK wants to be a world leader in the fight against climate change. Committing to reduce greenhouse gas emissions to almost zero by 2050 is an admirable but expensive and difficult goal to achieve. Counter-intuitively, cutting taxes on fossil fuels now may be a better place to start than continuing to milk dry the majority of road users until they are forced into electric cars. One idea could be to abolish fuel duty all together and instead levy a single charge for vehicle road use, which would treat all motorists equally based on their type of transport. This could be structured as an annual payment that would replace the existing system of road tax and fuel duty. It would also limit the government’s exposure to a catastrophic loss of revenue if consumers switch to electric vehicles quicker than expected. Addicted to fuel tax The problem is motorists have become a cash cow for successive governments. Fuel duties, excluding value added tax alone raked in just over £28 billion ($35.7 billion) last year, which is equal to £1,000 for each household, according to the Office of Budget Responsibility. Combined with road tax, the figure rises to almost £35 billion. Fuel… continue reading
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Source: CTRM Center