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The UK Government needs to start planning now for a national road pricing scheme, according to the BVRLA.
The rental and leasing industry body said there was a clear need for road pricing to be developed as increasing numbers of zero-emission vehicles arrive on UK roads, and that the government needed to make sure the transition from today's emissions-based road tax regime was as smooth as possible.
Addressing the House of Commons Transport Select Committee, BVRLA director of corporate affairs Toby Poston said: "There is a clear need for a new national road pricing scheme to be developed as more and more zero emission vehicles are seen on UK roads. We are removing fossil fuels from the equation, so the current emissions-based tax system will see revenues plummet.
"Any new road pricing scheme must be easy to pay and have the simple objective of providing a revenue-neutral replacement for fuel duty and Vehicle Excise Duty. It should be based on a simple 'distance driven' model that considers vehicle weight, emissions and use case, with discounts given to shared mobility solutions - such as car clubs, rental cars, buses and taxis - to incentivise more sustainable travel choices.
"It is imperative that road pricing is considered and trialled now to ensure a smooth transition into a new system. Drivers and fleet operators need clarity on future taxation as they make the transition to zero emission road transport."