EV numbers are increasing, amounting to almost 2 million vehicles on the road by July 2024. However, motorists switching to EVs are no longer paying fuel taxes and they are exempt from road tax, leaving a GBP 35 billion hole, or about 4% of total yearly tax revenue, in government financing. At the same time, the UK government plans heavy transport infrastructure investment. "As EVs do not pay fuel tax or road tax, they are basically exempt from contributing to the upkeep of public roads, and also to general tax revenue. A well-calibrated pay-per-mile system could be a simple way of spreading these costs equitably and not just have other drivers cover the share of those who can afford an electric vehicle," explains Tim Wray, mobility expert at Kapsch TrafficCom. What is a pay-per-mile system? A pay-per-mile system considers the distance travelled by motorists in their vehicles, as well as the type and emissions status of vehicles, and applies charges accordingly. That way, heavier road users pay their fair share, while less frequent users pay less. Depending on the configuration, modern pay-per-mile systems can also be used to regulate traffic in sensitive areas, for example around schools or hospitals, and reduce traffic volume during peak traffic hours. Differential pricing, where motorists are incentivised to align their usage with transport policy, has been proven to influence customer behaviour in many industries already, such as public transport. Time to act is now While EV sales are soaring, the total number of electric vehicles on the road is still comparatively small. This means that coupled with the existing subsidies, a pay-per-mile system aimed at those that do not pay fuel tax could be introduced comparatively easily. But in a few years this will no longer be possible, so the time to act is now. "In order to fully commit to the electric future and finance infrastructure upkeep, the fuel tax revenue question needs to be urgently addressed," urges Tim Wray. "The technology is already available and being used in countries around the globe, but the window for opportunity for an introduction in the UK is closing fast. We need to act now, or we will face increasing revenue pressures. Four per cent of yearly tax revenues cannot simply be ignored," Wray concludes. More information: Press | Kapsch TrafficCom Sandra Bijelic Head of Corporate Communications Kapsch TrafficCom AG Am Europlatz 2, 1120 Vienna, Austria P +43664628 1720 sandra.bijelic@kapsch.net End of Media Release Issuer: Kapsch TrafficCom AG Key word(s): Traffic 05.09.2024 CET/CEST This Press Release was distributed by EQS Group AG. www.eqs.com |
| Language: | English |
| Company: | Kapsch TrafficCom AG |
| Am Europlatz 2 | |
| 1120 Vienna | |
| Austria | |
| Phone: | +43 50811 1122 |
| Fax: | +43 50811 99 1122 |
| E-mail: | ir.kapschtraffic@kapsch.net |
| Internet: | www.kapschtraffic.com |
| ISIN: | AT000KAPSCH9 |
| WKN: | A0MUZU |
| Listed: | Vienna Stock Exchange (Official Market) |
| EQS News ID: | 1981777 |
| End of News | EQS Media |
1981777 05.09.2024 CET/CEST
© 2024 EQS Group
