Electric vehicles could generate £170bn tax loss

Declining tax revenue from vehicle excise duty and fuel sales over the coming decade could be a fiscal headache, says a think-tank

Growing numbers of electric vehicles in the roads will cut tax receipts. Photograph: Gareth SimkinsDecarbonising the road fleet may have enormous environmental benefits but will come at significant cost to the public purse.

In a report published on 26 June, think-tank Policy Exchange warns that income from fuel duty could fall to almost £17bn a year in 2030, down from £28bn today. The reduction would be a consequence of more electric vehicles being on the road to meet the UK’s climate change commitments.

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