The Society of Motor Manufacturers and Traders (SMMT) has called on the Government to consider a more future-proof taxation system for electric vehicles (EV) to help improve EV adoption.
Mike Hawes, CEO of the SMMT, said that instead of singling out one technology, there needs to be a rethink on road taxes which need to be strategically aligned taxation system.
Hawes said: “Industry is right to be deeply concerned, therefore, by the rumoured Autumn Budget proposals for pay-per-mile for EVs – a move which risks deterring consumers, adding to existing fiscal disincentives such as the VED Expensive Car Supplement and higher VAT on public charging.
“There is no doubt that Government revenues from fuel duty are being eroded as more drivers move away from fossil fuelled vehicles.
“The Budget must also prioritise growth – growth of the economy, growth of industry and growth of the market.”
He added that the SMMT will support investment as it looks forward to the Meet the Funder event in December, in partnership with the Green Finance Institute.
He said: “With less than one week to go until SMMT’s 108th Annual Dinner, the event is set to be one of the busiest ever.
“We’re excited to welcome so many senior figures from across automotive, aligned industries, government and media, to discuss our sector’s year – and the opportunities that lie ahead.”
