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Government Tax Losses And Savings.

2172 Views 27 Replies 17 Participants Last post by  Aleras
Increasingly, people are mentioning that the Government will be loosing income from tax on cars and fuel with the movement to electric vehicles. To counter this does anyone have any information on the amount of money that will be directly saved, for example, by the NHS by the reduction in treatments for patients affected by vehicle pollution e.g. asthma, emphysema, COPD and so on as well as treating the various cancers attributed to environmental toxins?

There is also the sheer loss to the economy by premature deaths, i.e. loss of trained workers, loss of consumers, reduction of output, time off work, not to mention the emotional factors.

I understand that a common figure used by many UK government departments to calculate this ‘value of a prevented fatality‘ is £1.8 million per early death and to the US EPA the ‘value of life’ is currently calculated as $9.1 million. Wikipedia mentions forty thousand premature deaths each year in the UK to air pollution alone, costing around £40 billion each year.

Can anybody refine these figures and how do they compare with estimated electrification tax losses?
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I've posted this link a couple of times before, but it's relevant again here. The IFS has a paper on exactly this: the black hole that will created by loss of VED, fuel duty & VAT (£40bn a year, or 5% of Govt revenue), and the social costs of motoring.

Their finding is that congestion - not air quality, CO2 or accidents - is the biggest social cost. And that won't solved by a switch to EVs.

So there are certainly health benefits to the switch to EVs, but don't expect to be welcomed with open arms by the exchequer for all the good you're doing. Expect time-based road pricing. You'll probably pay more per mile for peak-hour city driving than today's ICE drivers pay in duty.

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