A simpler system for taxing cars, based on vehicle weight and miles travelled, is being proposed as an environmentally credible replacement for vehicle excise duty (VED). The plan, outlined by Nick Molden, CEO of Emissions Analytics, and Felix Leach, associate professor of engineering science at the University of Oxford, applies the ‘polluter pays’ principle. They describe the current VED system as a “mishmash of incentives and penalties”.
From April 2025, EVs, currently exempt from VED, will attract the next lowest first-year rate of £10, rising to the standard rate of £190 in their second year. Molden argues that taxing cars on weight and mileage offers a simpler, universal approach to addressing their environmental impact.