Daily Mail

Clean, mean tax machine

- BY RAY MASSEY MOTORING EDITOR

You don’t need a crystal ball to predict one of the most radical changes set to face motorists from the new year — the move towards ‘pay-as-you-drive’ road tax. after a few false starts by both Labour and Tory transport secretarie­s, it’s firmly back on the agenda, despite provoking a furious backlash from motorists previously.

now, things could be different, as the Government’s tax take from motorists at the pumps plummets thanks to ever more fueleffici­ent and electrifie­d cars, such as Hyundai’s kona, priced from £35,100.

it features an achieved range of 233 miles, and this month has been named by consumer group which? its top product of the year.

its korean sibling kia has promised a new supply of £34,495 e-niro electric models for 2020, with a 280-mile range, to clear the 3,000strong waiting list after the 2019 allocation sold out within weeks. deliveries of its new £33,795 soul eV begin in april.

The Treasury earns billions from duty on every litre of petrol and diesel bought — plus the 20 per cent VaT it adds to the total price of the product and the duty — effectivel­y a tax on tax. so eliminatin­g convention­al petrol and diesel cars by 2040 (or earlier) and steering motorists towards zero-emissions, fully electric cars that can be charged at the mains will create a problem. How, apart from the annual road tax — also linked to emissions — will the Treasury recoup lost revenue?

pay-as-you-drive road pricing is the answer, say experts. early in the new year, the House of Commons Transport select Committee aims to kickstart a debate on national road pricing ahead of announcing an inquiry. Mps predict a ‘looming fiscal black hole’ of up to £40 billion a year and say all the pros and cons of road pricing will be considered. existing uk and overseas schemes will also be assessed.

Much of the key infrastruc­ture is already being installed. ‘smart’ motorways with cameras on overhead gantries to read number plates and regulate speeds can be easily adapted to track cars and send bills dropping through your letter box automatica­lly.

you have been warned.

 ??  ?? Red-hot savings: The electric Hyundai Kona is the Which? top product of 2019 Pictures: STUART G W PRICE / GETTY
Red-hot savings: The electric Hyundai Kona is the Which? top product of 2019 Pictures: STUART G W PRICE / GETTY
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