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07 Sept 2025

A quarter of UK drivers are in favour of a new pay-per-mile taxation system

A quarter of UK drivers are in favour of a new pay-per-mile taxation system

Half of drivers believe that if the UK were to switch to a pay-per-mile vehicle tax system, those in rural and remote areas should be exempt, according to a recent survey.

The survey of 2,000 UK adults found that a quarter would want to switch to a pay-per-mile system.

However, 44 per cent believe that where you live should not mean an exemption from pay-per-mile tax. The same percentage think that disabled drivers should be exempt or receive a discount – 30 per cent say retirees should be eligible for exceptions.

Tom Banks, car insurance expert at Go.Compare, which compiled the survey, said: “While a pay-per-mile method could discourage unnecessary vehicle use, considering those who need to drive will be very important to make sure they’re not being penalised for something out of their control.

‘This could be done through exemptions or discounts for some – which our research shows most drivers are in favour of – as well as non-taxable mileage allowances.”

Around 34 per cent of motorists believed that those who drive low-emission vehicles should be exempt or receive a discount for pay-per-mile taxation.

Around 26 per cent of drivers were in favour of switching the taxation system, whereas 53 per cent stated they did not want to change.

The UK’s transition towards electric vehicles and the zero tax inputs that owners benefit from are the primary reasons why the pay-per-mile taxation system has been proposed.

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