Electric cars are set to become a fiscal problem, and in many Western countries, drivers of such vehicles will be subject to a form of road tax, notes the president of the 2Celsius Association, Raul Cazan, in a recently published analysis.

“Bolojan government introduced a flat tax on electric vehicles: 40 lei per year. The measure has created little buzz, however, overshadowed by the general uproar over the taxation of conventional cars based on cylinder capacity. In the near future, however, in many Western countries (various North American states, the UK) drivers of electric vehicles will be subject to some form of road tax. In the UK, a tax of three pence per mile (around 2 cents per mile) will be levied on fully electric cars and half that amount on plug-in hybrid vehicles. A driver who drives 8,000 miles per year will pay 240 pounds. Electric vehicles will still remain more attractive than petrol and diesel vehicles, which cost drivers around 480 pounds per year, mainly in fuel excise duty. The tax will raise £1.9 billion by the end of the decade, according to estimates. government. Electric cars would become a fiscal problem,” claims Cazan, according to Agerpres.

According to the specialist, road taxes represent a large part of government revenues, the principle being established that all traffic participants should contribute.

“For years, financial experts have warned that the rise of electric cars and the demise of the internal combustion engine will put a strain on public finances. Road tolls account for a large part of government revenue, generating £24.4 billion a year in the UK alone (2025). Analysts expect revenue to fall from 0.7% of GDP today to just 0.1% by 2050-2051. The new scheme will cover around a quarter of this shortfall. This will change in the coming years; the rate and scope of the tax will certainly increase. What matters now is that the principle has been established that all road users should contribute. The Economist believes that it is best to introduce a new tax regime early, while electric cars are still a minority on the roads and their owners do not represent a very strong lobby”, emphasizes Raul Cazan.

It adds that 71% of the British public believe electric car drivers should pay some tax, while only 14% say they should not pay at all, according to a survey conducted by Stonehaven.

“Voters on the left tend to believe that cleaner cars should get preferential tax treatment, while those on the right think they should pay the same as petrol and diesel cars. But how would this tax be paid? Drivers would pay upfront for an estimated year of driving and pay the balance at the end of the year. Drivers” mileage declarations would be checked against their vehicle inspection records, as is the case in New Zealand. The big risk is that the tax will hit car sales. In the UK, electric vehicles are set to account for 80% of total sales by 2030. The new tax is expected to lead to 440,000 fewer sales over the next five years, although this will be largely offset by more generous incentives for car purchases. But if it works, it will be a rare victory: a radical, popular tax reform that creates good incentives and is likely to improve the health of public finances for decades to come,” the cited source claims.

According to Law 239/2025, starting from January 1, 2026, in Romania, owners of 100% electric cars must pay a fixed annual tax of 40 lei, after previously being exempt from such a tax.

The 2Celsius Association is an independent environmental organization that promotes public policies and initiatives to reduce greenhouse gas emissions and improve air quality in Romania.