Yes, but it would need a significant investment in transponer readers across the road network.
What about older cars and classics? Probably banned from Motorways and the like, a flat annual fee based on a declared mileage.
GPS based trackers that tell "mother" where you went and when would make much more sense, but I can hear the howls from those who see an invasion of personal liberty already.
As with all this sort of technology there would probably always be a flat fee-based alternative offered, but it would almost certainly be more expensive. Somebody doing say 10k miles a year with an overall consumption of 40mpg would pay nearly £700 a year in fuel duty. My guess is that if one didn't choose to have an in-car transponder and pay a fee based on actual usage the alternative fee would be at least that.
ICE vehicles would of course pay massively more fuel duty than currently. I wonder if there might also be a requirement to pay for carbon offsets alongside the fuel usage?