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    AA identifies one concern with Rachel Reeves’ new pay-per-mile car tax change

    4 days ago

    AA President Edmund King has already pointed out one potential perception issue with Rachel Reeves’ plans for a 3p pay-per-mile car tax fee. The Chancellor confirmed the new pay-per-mile charge for electric car owners, effective from 2028, as part of her Autumn Budget statement.  Under the new scheme, EVs will be charged 3p per mile to use the roads, with Plug-In Hybrid owners slapped with a 1.5p per mile rate. Fees are set to be calculated by checking the mileage on a car’s odometer counter as part of a motorist's annual MOT test. However, AA President Edmund King has warned the Chancellor may have a huge issue on her hands with motorists likely to falsely believe they are being tracked. Speaking exclusively to the Express, Mr Edmund said: “Some drivers, unaware how the scheme might work, might think it compromises privacy, which it doesn’t.”In their latest eVED consultation document, the Treasury explained that the system had been designed in a way to protect motorists' privacy. Concerns that vehicles would be fitted with telematics tracking devices have also been alleviated with the Treasury coming out and clearly rejecting the idea following the Budget. The eVED report explained that the “Government will not mandate use of these telematics for administering eVED”. It said that it would welcome feedback on how the technology could be adopted, but stressed this would only ever be used on an “opt-in” basis. It means if telematics tools are ever considered for pay-per-mile in the future, it will only ever be “optional”. The Treasury said: “The government has taken an approach that protects motorists’ privacy; there will be no requirement to report where and when miles are driven or install trackers in cars. “User-supplied mileage reporting and payments for eVED will be integrated into existing VED processes, to make complying with the new requirements as simple as possible for motorists.” The new eVED will work through a system of self-verifying mileage, which will then be checked at MOT tests. It is believed that motorists will enter their current mileage and then estimate their future mileage for the year ahead. Road users will then decide to either pay upfront or split the bill into smaller monthly payments via Direct Debit.
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