This will kill EV adoption, just to put it into perspective this is the equivalent of an average ICE car (38.6MPG) having 25.5p added per litre of fuel, in a single budget.
The even more ridiculous thing is plug in hybrids are 1.5p per mile, so people with 80+ miles of range in their Golfs etc. will pay half price, even though they are needlessly dragging around an internal combustion engine for 99% of their journeys.
Soneone spare a thought for me, tried not to be car brained and got an electric motorbike.
Massively efficient if you can bear the exposure but that’s now going to be charged at 3p/mile too. Problem is, it only costs 0.5p/mile to run so my tax is now 6x what the electric costs :(
Even with a EV car, with 2p per mile home charging, it is a 150% tax. It’s like they don’t want you be green. Hybrid getting half the tax because they have a dirty engine carried around.
Edit:
To compare:
LitresInGallon * LitreTax / MPG
4.54609 * 52.95 / 38.6
6.2p tax per mile
So double the absolute cost per mile, but wait:
Take cheap petrol of 127.7p per letre
127.7 * 4.54609 / 38.6
15p of fuel per mile
6.2p/15p = 41% tax
Compared to the 150% tax on EV’s.
I hadn’t thought about it like this, I don’t think the Gov would either as they only want to try to get closer to an EV and an ICE being taxed the same per mile. So using your example moving from:
EV = 0.1 pence of tax per mile (5% VAT on the 2p per mile you reference) ICE = 6.2 pence of tax per mile
to
EV = 3.1 pence ICE = 6.2 pence
But should it be absolute or relative? They have gone for absolute, which why it looks so unjust.
I do a thousand miles a month, all on EV, so this is £30 a month tax to me.