ECONOMY
New car tax pay per mile proposals could subject drivers to ‘unfair double taxation’

The fears arise if drivers are forced to pay a national road pricing scheme and city-wide Clean Air Zone rates at the same time. They warned local projects “may make it impossible to deliver” a national scheme altogether.

If a scheme did get off the line, they warn drivers could become easily confused if they were hit with various fees.

According to the Transport Select Committee report, respondents to the consultation were generally in favour of a national system instead of local schemes.

They said user-friendliness and clear governance are key benefits to using a national scheme.

However, there is clear concern drivers could be caught out if local schemes continue to be run alongside a national system.

The report said: “The taxes imposed by fuel duty and vehicle excise duty are increasingly duplicated by local schemes that charge motorists for entering congestion zones and clean air zones.

“New taxes, and particularly those that rely on new technology, take many years to introduce.

“The patchwork of devolved schemes may make it impossible to deliver a national road pricing scheme.

“The simultaneous operation of local and national road pricing schemes would subject drivers to confusion and unfair double taxation.”

The Transport Select Committee has warned balancing national and local schemes is the job of the Government.

They said experts needed to “examine how” a new scheme can be delivered while “respecting the existing devolution settlement”.

However, the Committee has also warned a new scheme must ensure drivers do not “pay more than they do currently” to use the roads.

The report added: “The Government must examine how an alternative road pricing mechanism can be delivered alongside devolved local road charging schemes, while respecting the existing devolution settlement.

“Any alternative road pricing mechanism must be revenue neutral to the Government rather than causing drivers, as a whole, to pay more than they do currently.

“Such a mechanism should be phased in before fuel duty and vehicle excise duty decline to zero.

“The situation is urgent; work must begin without delay.”

                                © Gettynew car tax charges pay per mile

However, some witnesses to the report said local schemes could work better under some circumstances.

Steve Gooding, the Director of the RAC Foundation said any congestion charge schemes would “make more sense” if they were “locally designed”.

The Adam Smith Institute suggested local mayors should be able to decide how revenue raised in their areas will be spent on transport updates.

Source: Express.co.uk

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