How will governments claw back lost fuel taxes?

How will governments claw back lost fuel taxes?

At the moment there are tax incentives for EVs in many parts of the world. Already in Britain the tax take from fuel has dropped because of more fuel efficient cars and reduced mileage and this has left a 'hole' in the government's finances.

At some point EVs will be sold in big enough numbers to start effecting the tax income from fuel and the incentives will stop and some way will have to be devised to recoup the loss of 'road tax' from EVs.

Clearly electricity cannot have a road tax portion nor can road tax be sourced centrally so??

Tolling by miles driven would seem fair but then cars would have be arbitrarily divided into EVs; RE-EVs; Hybrids; Plug-Ins and pure ICE-age cars - what a contentious mess that would be!

If all cars were tolled on mileage, then fuel tax would have to be dropped from fuel prices - and in many countries this would cause a huge drop in price thus undermining some of the running cost advantages of EVs.

This could ironically encourage a swing back to ICE-age cars unless there were other 'disincentives' such as ICE cars being banned from city streets as unsavoury and polluting.

Controlling and monitoring road use for tax purposes in a reliable and fair manner (visitors from other countries? - prevalent in Europe unless a central road tax was applied..)would be a hugely complex exercise and contrary to civil liberties in some people's minds.

How do others see this developing?!

Brian H | 21 October 2013

Reduced fuel tax and universal road tax.

AmpedRealtor | 21 October 2013

Levy higher taxes on gasoline, that should solve the problem. And yes, gasoline drivers absolutely should subsidize my portion of lost fuel tax because gasoline is evil, it is destroying the air that we breathe, and just as we tax cigarettes to death because they kill you, so should we tax gasoline.

Brian H | 21 October 2013

I like my system better. E.g. $1 reduction/100 mi (avg) on gas, $1.50/100 mi for everyone. ICE drivers pay 2.50, EV drivers pay 1.50.

Brian H | 21 October 2013

Clarification: assuming $2 current tax/100 mi on gas, then ...

772 | 21 October 2013

I agree, all that leaky oil causes more harm to the roadways. They should pay more.. but all of it is a stretch

bent | 23 October 2013

They could just legalize a few vices and tax those. A near infinite money supply right there.

Roamer@AZ USA | 23 October 2013

Miles driven per axle tax is the only logical solution. Will require some technology to implement in a way that doesn't require a trip to DMV once a year.