A huge tax shake-up could see drivers charged based on how far they travel.
The Government is reportedly considering a new pay-per-mile system to replace fuel duty.
It comes amid concerns over falling fuel duty revenue as more Brits switch to electric cars each year. Instead, motorists could pay tax based on how many miles they travel.
It would result in higher costs for those who rely on their cars for work or long commutes, though ministers argue these drivers already pay more for fuel.
It's unclear what the charge would be, with estimates ranging from 3p per mile to 15p, and an announcement could come at November's Budget.
The average driver covers 7,000 miles annually. They would face an outlay ranging between £210 and £1,050.
Those who do a long daily commute could be left paying thousands under new rules.
Rhydian Jones, motoring expert at Confused.com, said: "Ahead of the Chancellor’s Autumn Budget, discussions continue around the possibility of introducing a pay-per-mile tax for drivers.
"This kind of system would mean motorists pay road tax based on how much they drive, rather than a fixed yearly amount.
“This could benefit those who drive less, such as remote workers and pensioners but it could also raise costs for those who rely on their cars more heavily, including commuters and families in rural areas.
"A move like this would mark a major shift in how motorists are taxed and could redefine the cost of driving for millions across the UK, and could also give another boost to drivers going green in an effort to cut down on longer term costs."
FROM:
https://www.birminghammail.co.uk/motoring/motoring-news/drivers-who-over-7000-miles-32788117?int_source=nba
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