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Government Tax Losses And Savings.

2174 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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Every new car will have telematics and it will be pay per mile. This solves lots of other issues as well, cars without MOT and road tax when it's introduced for EVs when they reach critical mass. The loss of revenue will have to be replaced end of story.

We should enjoy it whilst it lasts but a freeloading entitlement attitide is not a sustainable way forward.

Not everyone drives and vehicles are still bad for the environment due to energy used in production.

its not just about the loss of tax revenues.
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The uk gov did spend £20bn on test and trace and yet we don’t have test and trace. They can certainly find money when they need to, and distribute it to their mates Call Me Dave and nobody bats an eyelid on the Tory side. Miserable sponging bastards. Higher tax on those arsewipes could pay for the offset.

apologies for rant.

back on topic, I would happily support grants like the French to get people to buy either a standard bike or an electric bike. I can’t help feeling that weight pricing would be tricky but not behind the realms of imagination. The data available currently for on board measurements could be used to decide weight so that an empty vehicle would be cheaper than a loaded one. For example, I don’t need all my work equipment tomorrow so I’m taking a light car, but I often have a fully loaded car at the start of a job, or if I am carrying additional passengers. Perhaps a ‘free‘ limit up to three passengers or equivalent?

the engine and cpu does the calculation already for required power.
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Its tricky: for every year of life lost (after people stop being workers and reach retiral age) the government saves a lot in pension payments and so on: not just state pension but also all index-linked public sector final salary pension schemes.
However, much depends on disability costs: in other words, how long it takes people between becoming dependent and dying. This varies a great deal: some folks are disabled for decades, others pass swiftly.
No wonder the government keeps on moving the pensionable age upwards: this saves them a fortune.
Can print more money : inflate the debt away.
VAT on new EV car sales should be quite a big take by the govt.
I don’t get this obsession with people suggesting ANPR will become the norm, I highly doubt it will. In a urban centre, maybe but It’s expensive, vastly unscalabe and also technically difficult to manage with such a network. AI might help but as a rule, government and IT projects are a disaster. I may be completely wrong and that’s what they decide to do but I really hope they don’t.

I agree though as some have said here that the taxes all shouldn’t be on the drivers as everyone benefits from the road network but it’s going to be tricky to do and nobody has any real answers at the moment. I know the VED and fuel bring in roughly £60 billion to the coffers every year but the health benefits will balance out some of that. The NHS budget for 2019 was around £135 billion pre-covid, so I suspect you could potentially shave a few billion off of that if people are healthier. That said, the NHS has been underfunded for years so let’s not give the governments any reason to reduce that budget.

I have to admit, it’s a really interesting socio-economic problem and it will be fascinating to see what the social and economic boffins and think tanks come up with. I also look forward to more theories and discussions on this thread!
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Can print more money : inflate the debt away.
VAT on new EV car sales should be quite a big take by the govt.
Financial illiteracy. Have a look at Zimbabwe and Venezuela
Financial illiteracy. Have a look at Zimbabwe and Venezuela
very different economies and political situations.
However printing money always ends up with the same resukts. Hyper inflation and total ruination of the economy.....
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