Several countries, such as Switzerland and the United Kingdom, want to end exemptions for electric vehicles.
According to Her Majesty’s Lands, these are estimated to be taxed normally within two years, with less aid and higher taxes to compensate for the drop in revenue related to thermal vehicles.
To meet targets for reducing greenhouse gas emissions, public authorities in Western countries often rely on the adoption of electric motors to replace combustion engines in private vehicles. But the technology is not yet fully mature, as infrastructures are still very underdeveloped, and using an electric vehicle means adopting new travel habits.
Governments are implementing a series of measures to encourage their use and purchase of electric vehicles. Environmental bonuses, tax incentives or, conversely, traffic bans in certain zones for internal combustion vehicles. But now, everything points to the fact that this phase will not last forever, because the ban on the sale of thermal vehicles is now planned for 2035.
‘Sweet’ for trams with an end in sight
But the disappearance of thermal vehicles also means a waiver of the government’s very important revenue related to the purchase of fuel. However, we must continue to fund the infrastructure to maintain it!
In the UK, the first sign of change has now been given, when Home Secretary Jeremy Hunt announced that all electric vehicles will be subject to road tax from spring 2025. Thus within two years the same tax as thermal vehicles will be levied on electric vehicles.
It turns out that the UK is not the first country to question itself on this matter. Since last summer, Switzerland has been developing a kilometer-based indexing system to tax electric vehicles according to the kilometers they travel, thus offsetting future losses associated with falling fuel sales.
The issue of fuel taxes in the UK has yet to be resolved, but as they generate £35 billion a year, it is not hard to imagine the headaches they cause the British government.
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