However, they insisted any pay-per-mile charge would not introduce “vehicle-tracking” with many owners likely to be concerned over invasion of privacy.
Their Autumn Budget report reads: “We calculate a 2p per kilometre charge (based on distance only therefore not requiring vehicle tracking) would raise £815million in the first year, but revenue will grow as ZEV update increases.
“It is also low enough to maintain the incentive to switch to EVs, and it can be coupled with exemptions for existing ZEV owners or caps for certain categories of vehicles such as for fleets or people in rural areas.
“Introducing distance-based taxation for ZEVs would ensure that the transition to cleaner vehicles does not undermine public finances.”
Previous research for the CBT showed there could be support for some kind of EV charge in the UK.
A hefty 60 percent of the 3,000 adult respondents said there was a “need to reform” the current VED system.
Meanwhile, 65 percent were convinced that EV drivers should pay taxes like all other motorists on the road.
EV owners have so far been exempt from tax charges but this will end in April 2025 as Vehicle Excise Duty (VED) rates are slapped on motorists for the first time.
The CBT added: “We are dealing on the Treasury to announce in the Budget the introduction of a simple pay-per-mole tac on ZEVs in lieu of fuel duty, while allowing for a sufficient transition period for drivers and businesses to prepare.”
However, officials have recently ruled out the introduction of any pay-per-mile charge this October.
A Government spokesperson said: “We have no plans to introduce road pricing.
“We are committed to supporting our automotive sector as we transition to electric vehicles in order to meet our legally binding climate targets.”
