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Slowing down the transition, sending mixed signals to motorists, harming UK growth and investment. They were three of the core messages from the BVRLA’s response to the Government’s consultation on the proposed electric pay-per-mile tax, eVED.
Submitted on behalf of members before the consultation closed last Wednesday, the BVRLA’s response reiterated the association’s position that eVED is the wrong tax at the wrong time. The contents of the submission were informed by extensive engagement with BVRLA members and outlined the operational challenges the Duty as proposed would create.
Such challenges were also discussed at roundtable discussions and meetings with government officials, with the BVRLA and its members able to raise the sector's concerns directly.
While the overriding message in the response was that eVED does not work, it is important to note that the consultation was designed to explore the practicalities of introducing eVED, not to question the core concept. As such, the BVRLA was also measured in responding to all aspects of the consultation. This ensures that member views are considered if the government decides to proceed with the Duty despite the concerns tabled by the association and others.
The submission stated that, for eVED to be at all workable, key flexibilities would need to be introduced. These include:
- Ability for rental and leasing companies to estimate fleet mileage and pay eVED in bulk or on a daily rate, with a reconciliation on vehicle disposal
- Rental and leasing companies to be accredited as registered mileage approvers so that annual mileage checks at an MOT garage can be avoided
- Option for rental and leasing companies to use digital processes to report mileage from launch, not at a later date
Across the 16 questions set out by government, the BVRLA’s response drew from a recent visit to Iceland – one of two other countries to have introduced a similar mileage-based tax – direct, aggregated input from members, and insights gathered from extensive cross-industry engagements.
Details of the BVRLA’s position can be viewed by members on the BVRLA website.
The BVRLA’s activity in this area remains ongoing, including Chief Executive Toby Poston giving evidence to MPs as part of the Transport Select Committee on Wednesday 25 March.
Members that participated in the process are thanked for their efforts. Any members to have submitted their own response to the consultation are requested to let [email protected] know, as it may assist with ongoing work on this topic.
