A sign of things to come in the UK? Isle of Man will tax electric vehicles in 2020
A new electric vehicle tax will hit the Isle of Man from April 2020 to cover lost fuel tax revenue from petrol and diesel vehicles1.
Zero emission vehicles, which are currently not taxed, will be subject to a £14 charge, infrastructure minister Ray Harmer told the Isle of Man Parliament, Tynwald.
Mr Harmer says the tax is necessary as funds collected from petrol and diesel vehicles will “rapidly decrease over the next 10 years”.
Currently, there are 280 electric vehicles and 706 hybrid vehicles registered on the island.
The infrastructure minister says while it is “good to incentivise”, there are “other reasons” for people switching to electric cars, including improvements in technology.
Back in October, the UK House of Commons’ Transport Committee called for a national debate on road pricing in the advent of an electric car revolution, with suggested schemes including a pay-as-you-drive road tax,
Financial experts have also predicted that the popularity of electric vehicles could lead to nationwide road tolls for all drivers totalling £700 a year, so it's likely that the UK government will be paying close attention to the Isle of Man electric vehicle charge.
RAC sale – up to 40% off*
• Standard cover from £5.29 a month*
• We get to most breakdowns in 60 mins or less
• Our patrols fix 4/5 breakdowns on the spot
*97% of customers achieve max 40% saving on new Standard and Extra cover for 1 person. Ends 04/11/2025 10am. At least 10% of new customers pay this for single-vehicle Standard cover.
Mr Harmer described the “difficult balance” of moving towards a new environment with electric vehicles, and the ongoing responsibilities of road maintenance.
“The highways need to be repaired and we need money to do that,” he said.
Andrew Langan-Newton of The Isle of Man Green Party (IOMGP) said financial incentives are “important in encouraging the adoption of low carbon transport”.
He said that while a tax is to be expected, removing the incentives before people own an electric car is “a retrograde step”.
Mr Langan-Newton called for a government grant or loan scheme to “assist lower earners in Isle of Man society in having access to electric vehicles”.
- What is the ‘diesel tax’ and what does it mean for diesel owners?
- Driving without tax guide – what’s the penalty?
- Electric cars – the ultimate guide
- ‘Huge role’ for cars in 2020 as public transport confidence hits 18-year low
Further details of this new charge will be brought to Tynwald in February 2020.
Is it illegal to drive without shoes?
Get the answer and more useful driving content sent straight to your inbox.
You might also like
What is the ‘diesel tax’ and what does it mean for diesel owners?
We take a closer look at the taxes, fees and surcharges facing diesel owners amid the battle to clean up Britain's air.
Driving without tax – what's the penalty?
By law, it’s an offence to drive a vehicle in the UK without road tax Any motorist caught driving without it could be fined up to £1,000.
Video
11 ways to reduce your driving emissions
Reducing your emissions is good for the environment and will also offer better performance, increased fuel economy and be cheaper to run
A new road tax could one day be pay-as-you-drive
Popular in News
1
Car buyers to save thousands as EV grant returns
2
Private parking companies issue a record 14.4m tickets to drivers in a single year
3
Drivers fined £1m from just 36 yellow box junctions in 2024
4
Road deaths on the rise in Great Britain
5
Private parking industry urged to publish ‘full and transparent’ complaints and appeals data
6
Drivers now able to search for new home that comes with EV chargers
7
Leicester’s Sean Kimberlin named as RAC Mobile Mechanic of the Year
8
Number of drivers caught using unroadworthy vehicles jumps by 52% in a year
9
Warning to drivers across the UK over fake parking apps
10