Should there be Road Tax on Electric Cars

Path Holes

Isle of Man will levy road tax on Electric Cars from April 2020 to cover lost fuel tax revenue from petrol and diesel vehicles.

Currently Zero-emission vehicles  are not taxed at all, but from April 2020 they  will be subject to a £14 charge, infrastructure minister Ray Harmer has told the Isle of Man Parliament.

He said tax is necessary as funds collected from petrol and diesel vehicles will “rapidly decrease over the next 10 years”. and while it is “good to incentivise”, there are “other reasons” for people switching to electric cars, including improvements in technology.

He described at as a “difficult balance” of moving towards a new environment with electric vehicles, and the ongoing responsibilities of road maintenance.

“The highways need to be repaired and we need money to do that,” he said.

Currently, there are 280 electric vehicles and 706 hybrid vehicles registered on the island.

In October 2019,  House of Commons’ Transport Committee called for a national debate on road pricing anticipating an electric car revolution, and suggested some schemes including a Pay You Drive Road Tax.

Some Financial experts have predicted that the popularity of electric vehicles could lead to nationwide road tolls for all drivers totalling £700 a year, so it’s likely that the UK government will be paying close attention to the Isle of Man electric vehicle charge.

The Isle of Man Green Party (IOMGP)  spokes person said financial incentives are “important in encouraging the adoption of low carbon transport”. and  while a tax is to be expected, removing the incentives before people own an electric car is counter productive.

Do you think the government should be incentivising drivers to take up electric vehicles or perhaps you think it’s only fair to tax them like this? Leave us a comment below