GAURAV BATRA
INTERVIEW
Governments worldwide heavily tax petrol and diesel , often accounting for a large portion of consumers ’ pump prices . In the United Kingdom , for example , the government imposes significant taxes , including Value Added Tax ( VAT ), which contributes substantially to the cost of fuel and serves as a critical source of revenue .
Globally , fuel taxes form an essential component of many national budgets . In the UK , fuel duties are expected to generate approximately US $ 32.5bn (£ 24.7bn ) in the 2023-24 fiscal year , accounting for 2.2 % of total government receipts . The trend reflects the global situation , where fuel taxes are a vital source of income for governments .
CONSEQUENCES OF LOST REVENUE As countries including the UK transition toward EVs by 2035 , there is growing concern about how governments will offset the loss of this crucial revenue stream as fuel taxes decline . For instance , the UK anticipates losing US $ 17bn (£ 13bn ) annually in fuel duty by 2030 due to the increasing adoption of EVs .
The Office for Budget Responsibility ( OBR ) forecasts a reduction in tax receipts by US $ 2.7bn (£ 2.1bn ) in 2026- 27 , with US $ 1.8bn (£ 1.4bn ) resulting from lost fuel duty . The transition impacts multiple revenue streams , including fuel duty , vehicle excise duty and potential tax revenues from gas / petrol stations and convenience stores .
GAURAV BATRA
TITLE : GLOBAL ADVANCED MANUFACTURING & MOBILITY ANALYST LEADER
COMPANY : EY
INDUSTRY : PROFESSIONAL SERVICES
LOCATION : DELHI , INDIA
Gaurav Batra is the Global Advanced Manufacturing & Mobility Analyst Leader at EY and a recognised expert in the future of mobility , particularly in EVs and the automotive market . His career includes extensive experience in growth strategy , market-entry and business plan analysis . Gaurav has led international teams , worked closely with senior client stakeholders and enhanced EY ’ s service offerings . He holds a Bachelor ’ s degree in Commerce from Delhi University and an MBA from the International Management Institute , Delhi .
“OTHER IDEAS , LIKE TAXING ELECTRICITY USAGE TO CHARGE EVS , MIGHT SOUND STRAIGHTFORWARD BUT REQUIRE A SIGNIFICANT INFRASTRUCTURE UPGRADE ”
30 November 2024