The old Road Tax arrangement had a Morris Minor owner paying the same as a Toff with a Bentley?Yup, that fixes one problem, but how do you scale the cost depending on road use?
At the moment someone driving an older small car with a tiny engine who covers a modest amount of miles per year will pay a modest amount of tax both for VED and at the pump. If you apply a blanket fee for electric cars and you have someone doing likewise with a small electric vehicle then they get disproportionately hammered. Unless you link it to mileage, but then you need to know exactly how many miles everyone drives and that means good old big bro having access to your activities, and I’m not entirely sure that people would like that.
It’s a real tough nut to crack as you can’t suddenly make lower earners who need cars unable to afford them esp in rural areas as how do they then get to work?
Disproportionate taxation is the real risk here and I haven’t heard anyone come up with anything that will truly work. Yet!
K