Major car tax proposals branded ‘clueless’ as fear of £35billion loss from fuel duty grows

Major car tax proposals branded ‘clueless’ as fear of £35billion loss from fuel duty grows

01/22/2022

Petrol prices: Howard Cox calls for cuts to fuel duty

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Fuel duty rates are expected to drop significantly in the coming years as a result of the increased uptake of electric vehicles and the 2030 ban on sales of new petrol and diesel vehicles. The RAC Foundation has recently warned that Chancellor Rishi Sunak could face losing almost a third of revenue from fuel duty before the end of the decade.

In 2019, pre-pandemic income from fuel duty was £28billion, with around £16.4billion or 58.6 percent was derived from the 32.9 million cars on the UK’s roads at the time.

Modelling work from the report found that if there is a high uptake of EVs, the revenue loss from fuel duty could reach £9.4billion by 2033.

Numerous types of car taxation have been suggested, including a pay-per-mile model, geographic or toll-based charging or even a time-based rate.

Howard Cox, Founder of the FairFuelUK Campaign, slammed the car tax reforms which have previously been suggested.

Speaking exclusively to Express.co.uk, he said: “The Government is clueless to how the future of road taxation will be delivered.

“Because of them and their out of touch un-costed un-consulted green agenda, they have overlooked the little matter of how £35billion of fuel duty and its allied VAT will be safeguarded.

“This reckless management of the Exchequer’s traditional revenue income warrants independent scrutiny, I’d go as far to say, legal intervention must be put in place to challenge the Government’s fiscal stupidity.

“Drivers contribute the fifth largest income to the Treasury, each and every year without fail.

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“Yet the environmental brainwashing that has dominated the Conservative Government, in between their partying, means they have completely disregarded the fiscal damage, their headlong move for all of us to drive electric, will cause.

“They simply have no idea as to what will be the best way to replace the plummeting fuel duty that they have unnecessarily initiated.”

Both the RAC Foundation and the Tony Blair Institute for Global Change have predicted a “black hole” for the Government with the reduction of fuel duty revenue.

There are fears that these effects could be felt sooner rather than later with driving habits changing and the boom in popularity of electric vehicles.

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