Car tax changes which could see a new pay per mile system introduced may see motorists forced to pay five times more to use the roads according to the new data seen exclusively by The analysis looked at average road costs of a driver who was travelling 10,000 miles.

Under current costs, FairFuel has predicted drivers would spend £1,402 per year on petrol to fill up their cars.

This would come with a total VAT and fuel duty price of 14p per mile which would equate to a total charge of 1,400 per year.

On top of the fuel duty charges owners are charged £150 per year on Vehicle Excise Duty (VED) if their car is over one year old.

This would leave a total spend of just over £1,500 on taxes but £1,750 this will increase as overall mileage rises.

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Those who travel 12,500 miles would spend £1,750 on taxes with those travelling 15,000 miles set to pay £2,000.

However, based on predictions from Nick Freeman that a pay per mile system will be priced at around 75p, charges will dramatically rise.

At this rate, 10,000 miles will see overall costs rise to £7,500 per year to use the roads.

Overall charges will rise to £9,350 for those who travel 123,500 miles and £11,250 for those who drive 15,000 miles per year.

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Speaking exclusively to, Howard Cox said: “At a reported 75p per mile, will cost a family petrol car driver an eye-gouging £6,500 more than they annually pay now in Fuel Duty and VAT (this does not include VED changes).”

The Treasury is considering a new pay per mile system to help fill a £40billion gap in public finances caused by the switch to electric cars.

The Government will lose revenue generated by VED and fuel duty which is not paid by electric cars.

When asked about a possible introduction of a pay per mile scheme, the Department for Transport said they will “ensure” motoring taxes keeps pace with changes on the road.

They said any changes to the tax system will be considered by the Chancellor with any further steps announced in due course.

Fuel duty has been frozen at 57.95p since 2011 which the Treasury believes has saved drivers £1,200.

It is believed a small 2p or 3p fuel duty rise is now being considered to generate extra income in the short term.

it is expected the Treasury has lost around £100billion over the last decade as a result of not increasing the costs.

However, a report from Fair Fuel and the CEBR has warned any rise in fuel duty charges would generate “little revenue”.

They said short term gains from any increase would be between £250 and £460million but would tail off as more drives switched to electric vehicles.

Within 20 years the amount of extra revenue would only be around £50 to £90million.

FairFuel said a fuel duty rise would only play a “minuscule role” in sorting out the nation’s finances despite the damage an increase could cause to thousands of motorists.



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