Institute for Fiscal Studies calls for road tax rethink

摘要

The Institute for Fiscal Studies (IFS) has recommended a new system of road pricing to compensate for the £28bn loss in revenue from fuel duty as the UK gradually shifts to electric vehicles. The IFS said the measures should apply to all vehicles and would affect operators. A 2ppl cut in fuel duty would cost about £1bn a year, the IFS said. But revenue from existing road taxes, which raise £40bn a year, will shrink in the next few decades if the government's goal of achieving zero net emissions by 2050 is met. The institute recommends an immediate government review of motoring tax "before expectations of low-tax motoring become ingrained".