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EV & Sustainability

Fleets must engage with eVED consultation, warns AFP

Paul Hollick said that members have accepted the need for the Government to recover revenue lost from petrol and diesel fuel duty.

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Fleet engagement with the Government consultation on Electric Vehicle Excise Duty (eVED) is “essential” to highlight a wide range of potential problems, said the Association of Fleet Professionals (AFP).

Paul Hollick, chair of the AFP, said that the industry body’s members broadly accepted the need for the Government to recover revenue lost from petrol and diesel fuel duty, but there were major concerns about the system being proposed.

He said: “Fleets generally recognise the Chancellor needs to balance her books and that fuel duty is being lost as more and more fleets and private motorists adopt electric vehicles (EVs).

“However, there are considerable problems with eVED as currently proposed. At a strategic level, the timing is highly questionable.

“Acceptance of EVs in the fleet and especially retail sectors is growing steadily but still highly uneven.

“Adding to costs before electric cars become the norm, especially with a new form of taxation, is a very risky move.

“Initial public reception to the idea of pence per mile payments has not been positive and there is the possibility that eVED becomes a further, perhaps major, barrier to EV adoption.

“The government’s thinking appears to be that this negativity will be offset by continuing the new electric car grant until near the end of the decade but whether that will materialise is questionable.

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“Also, it won’t help demand in the used market, which is perhaps where fleets have the biggest concerns about electrification because of less than expected residual values.”

Additionally, there were problems with the eVED scheme as outlined, Hollick said, with the estimated mileage amount paid upfront and adjusted 12 months later following verification.

He added: “It’s just something of a hotch-potch. It’s not really pay-on-use and it’s not really retrospective charging. We’re struggling to see any advantages at all in this approach.

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“The obvious alternative is a technological solution but journey tracking would inevitably and properly raise questions over privacy and civil liberties.

“Also, any form of hardware or software used to collect data could add significant costs for fleets and private motorists.”

A further issue, he added, is the need for drivers to book into MOT test stations annually to have their mileage verified.

Hollick said: “Cars under three years old, representing the vast majority of fleet vehicles, don’t visit MOT stations and it’s an area where we know there is undercapacity, so this will mean lost work time and unnecessary disruption.

“It certainly doesn’t fit with the consultation’s stated aim of minimising the administrative burden of eVED.”

Hollick added the AFP’s Future Roads Committee would be convened soon in order to aggregate member views on eVED and present them to the Government.

He said: “We’re planning on making our views heard firmly as an industry body and it is essential individual fleets to do the same.

“The more information that can be presented as part of the consultation before the March 18 deadline, the better.”

Despite the many difficulties that eVED presented, it was promising that the Government had established a track record of listening to fleets on major issues, he added.

Hollick said: “Our experience of working alongside other industry bodies to present the fleet sector’s concerns about policies that affect us has been largely positive. The government often takes note of our representations.

“In the last week or so, we’ve seen this in new measures that make adoption of 4.25 tonne electric vans much easier and in the Budget, the extension of the VED Expensive Car Supplement to £50,000.

“We’re very much hoping a similar, pragmatic approach will be applied to the many concerns we hold about eVED.

“A plus point is that we have more than two years before the planned introduction of the new system and it is possible, even probable, that considerable time and effort will be needed to arrive at a solution that works for fleets, private motorists and the Treasury.

“The current consultation may well be the first step in a lengthy process.”

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