Taxing EVs Is a Treacherous Experiment for the UK: Javier Blas

The UK has broken a taboo: Driving electric-vehicles won’t be tax free – and rightly so. What follows is an experiment every other Western government will pay attention to.

It’s a perilous process: Replacing the current fuel duty with an EV per-mile tribute. The upside is limited, at best preserving the fiscal status quo, with the amount raised by the new levy matching the old one. The downside is vast: Get it wrong, and the UK risks jeopardizing the adoption of EVs, lots of car-industry jobs and a huge tax hole if the new levy doesn’t raise as much as ...