Home Business NewsBusinessAutomotive NewsNearly 30% of UK drivers think car tax should be based on mileage

Nearly 30% of UK drivers think car tax should be based on mileage

by Thea Coates Finance Reporter
6th Nov 25 7:42 am

According to the survey, 22% of UK drivers believe the current car tax system is unfair.

When asked what they think would be the fairest way to be charged, 29% said it should be based on mileage driven, suggesting these drivers may support a pay-per-mile initiative.

This was followed by emissions-based charges (18%) and a flat fee for everyone, regardless of use or vehicle (14%).

The research also explored what fairness means for motorists in practice.

Respondents who favoured different tax models were then asked how they would apply them. The results show that drivers believe those who use their cars more, and produce higher emissions, should pay more in vehicle tax.

  • Three-quarters of those who said tax should be based on mileage think drivers who cover more miles should pay more each year.
  • The vast majority (87%) of respondents who favour an emissions-based charging structure believe higher emissions should equal higher tax.
  • Among those who think tax should be based on vehicle age, 45% say owners of newer vehicles should pay more, compared with 34% who think older cars should.
  • Those who support a tax system based on vehicle type believe diesel vehicle owners should pay the most (43%). Interestingly, more thought electric vehicle drivers should face higher rates (19%) than petrol owners (16%).

Claire Willis-Mckissick, temporary car insurance expert at Tempcover said, “Our research suggests that there is a strong driver preference for paying for vehicle tax based on how much you use your car.

Temporary car insurance works on the same principle, you only pay for the hours or days you actually drive. It’s a flexible way to stay covered, and it taps into the growing appetite among motorists for pay-as-you-go solutions, whether for tax or insurance.”

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