Tax systems are a complicated tool that must be implemented carefully, and the rise of electric vehicles puts that into sharp focus. The United Kingdom’s is the latest government that is being forced to weigh the benefits of EV’s lower pollution against the risk of regressive taxation.
As with other jurisdictions around the world, the UK is primarily concerned with lost revenue that EVs will represent in the form of avoided fuel taxes. The nation currently raises around £32 billion ($40 billion USD at current exchange rates) per year at the pump, reports Bloomberg.
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