However, some drivers may be exempt from the updates with no update yet to be made on the future of classic and electric vehicles. These models are currently exempt from road tax charges under the current system and no update has been provided on whether these will be included.
The switch to a pay as you go system is being considered to fill a £40billion black hole caused by the switch to electric vehicles.
The move to zero-emission cars will see the Government lose out on VED road tax costs and fuel duty charge which will leave a hole in public spending.
Paying no road tax is a major incentive for many to make the switch to electric vehicles but it is currently undecided whether owners of these cars will pay under any new system.
The Department for Transport said they are committed to achieving net-zero emissions by 2050 through the transition to electric cars.
They say that as the UK moves towards the transition, it is vital motoring taxes keep pace with this change.
This highlights there could eventually be a move to taxing electric car owners but this is unlikely to happen only when there has been enough take-up of the new models.
Speaking exclusively to Express.co.uk, Dan Martin, CEO of Electronics said electric car owners understood long term tax exemption was “not sustainable” but issued a key warning.
He said it was vital schemes do not become confusing or even act as a detriment to owning an electric vehicle.
He said: “As pay by the mile schemes are being considered it’s a good time to reflect on the purpose of the initiative.
“As an advantage of electric vehicle uptake has historically been a tax exception benefit, the EV community understands that long term Road Tax exemption is not sustainable and this strategy en masse only leaves a gaping hole in the transport budget which helps no one.
“If the objective is to reduce pollution then a pay by the mile model makes sense but as the majority of pollution is created in cities by short journey vehicles, it needs to be combined with localised congestion tariffs that consider the holistic challenge of cleaning up the air.
“What is important is that schemes don’t become cumbersome, confusing and in particular don’t serve as a detriment to EV ownership.
“Any taxation scheme should serve to deter long term petrol/ diesel uptake and help the population move towards greener solutions.”
Classic cars built before 1 January 1980 are exempt from paying road tax charges under the current measures.
Drivers must still apply for a tax exemption but owners of older models can benefit due to the Historic Vehicle tax exemption rules.
There is no confirmation yet on whether this will change under the current system but this looks more unlikely.
Pay per mile systems will force drivers to install telematics black box devices inside their cars to monitor how many miles drivers have covered.
With many older models coming with no electrics it would be almost impossible to install the technology on the vehicles.
Nigel Woodward, CEO of Classic Motor Cars says his “initial hope” is classic cars will be given a further “free pass”.
Speaking exclusively to Express.co.uk, he said: “Bearing in mind that road tax for most classic cars currently is free, I’m shooting from the hip from this one but I’m rather suspecting [that will remain].
“Bearing in mind in comparison to UK vehicles, the tiny amount of classic cars that are on the road, I cannot imagine it would be worth the authorities legislating to install that sort of equipment.
“I’d have thought classic cars would get a free pass would be my initial hope.”