Electric cars are regularly heralded as being the future of the motoring industry. But what would happen if we all suddenly ditched our current motors in favour of an electric alternative tomorrow morning?
Well, it would cost the government £24 billion in lost tax every single year according to MoneySupermarket. Unsurprisingly the vast majority of this is made up of fuel duty charges, which the government has obviously become too reliant upon. The rest of the £24 billion total consists of road tax, congestion charging and tax which is placed on car insurance premiums. The government would make an additional £418,499,283.81 per year from tax placed on the additional electricity used, but this would be of little consolation in light of the other loses.
It would of course prompt the government to make accrue tax from other areas, potential through higher road tax premiums or maybe even a higher rate of tax placed on electricity usage which would hit all households. Either way, this really indicates that the government will need to change its tax practices substantially if the electric car movement becomes a reality.
However, on an individual level the savings available are not particularly substantial enough to warrant the additional cost of buying an electric vehicle. When you consider that a brand new Nissan Leaf is about £12,000 more expensive than a basic Ford Focus; an annual saving £952.08 really isn’t good enough.
The data has been summarised in the following infographic:
Image source: MoneySupermarket Car Insurance