Infographic: Are Electric Cars a Bane to the Government?

Electric cars have been touted the future of motoring as the supplies of oil dwindle and the cost of fuel at the pump sky rockets. But if every car was electric, how much would the government stand to lose in terms of road tax and more significantly fuel duty? Will the shortfall be accepted in this age of budget austerity?

Electric cars are often heralded as the future of motoring: Energy efficient, environmentally friendly and economical. But what would actually happen if every motorist did go down the electric car route?

Electric cars have been touted the future of motoring as the supplies of oil dwindle and the cost of fuel at the pump sky rockets. But if every car was electric, how much would the government stand to lose in terms of road tax and more significantly fuel duty? Will the shortfall be accepted in this age of budget austerity?

Electric cars are often heralded as the future of motoring: Energy efficient, environmentally friendly and economical. But what would actually happen if every motorist did go down the electric car route?

We have crunched the numbers and found that in the United Kingdom, for example, the government would lose over £24 billion ($39 billion) in tax every single year if every motorist in the UK opted for an electric vehicle. This biggest loss would obviously come from fuel duty, which makes up about 80 percent of this total figure.

The government would also lose approximately £4.8 billion ($7.7 billion) from road tax charges and close to £37.5 million ($60.4 million) from car insurance sales, which are generally about 5 percent cheaper for environmentally friendly car owners through a number of motor insurance providers.

 

 

Related Infographic: Will The Electric Car Change The World?

Related Story: Thunder Road: Sparking a Revival for the Electric Car

via MoneySupermarket Car Insurance