In a move that could be replicated by the UK, the Isle of Man is set to tax electric vehicles from April to cover lost fuel tax revenue from petrol and diesel vehicles.
Zero emission vehicles, which are currently not taxed, will be subject to a £14 charge, infrastructure minister Ray Harmer told the Isle of Man Parliament, Tynwald. Currently, there are 280 electric vehicles and 706 hybrid vehicles registered on the island.
Mr Harmer described the “difficult balance” of moving towards a new environment with electric vehicles, and the ongoing responsibilities of road maintenance. “The highways need to be repaired and we need money to do that,” he said.
Back in October, the House of Commons’ Transport Committee called for a national debate on road pricing. As a greater number of cars become electric, the Government stands to lose more and more in fuel duty. Currently, the Government makes around £28 billion a year from the 57.95p per litre of fuel duty added to petrol and diesel.
Suggested schemes include a pay-as-you-drive road tax, so it’s likely that the UK government will be paying close attention to the Isle of Man electric vehicle charge. Further details will be brought to Tynwald in February 2020.