Government confirms next step towards UK pay-per-mile tax for electric vehicles
The UK Government has confirmed it intends to introduce a new mileage-based tax for electric vehicles from April 2028, following the outcome of a public consultation on the proposed system.
The planned Electric Vehicle Excise Duty (eVED) scheme would introduce a charge based on the number of miles an electric vehicle travels, while existing Vehicle Excise Duty arrangements remain in place. Ministers say the measure is intended to help replace declining fuel duty revenues as more drivers switch away from petrol and diesel vehicles.
Under the proposed model, motorists would submit an annual odometer reading when renewing vehicle tax rather than having journeys monitored through GPS or telematics. The Government says the approach is designed to protect privacy by recording only total mileage.
Current proposals suggest fully electric cars would pay around 3p per mile, while most plug-in hybrids would pay 1.5p per mile. Electric vans are expected to remain exempt. Officials estimate the scheme could generate around £1.2 billion each year.
Following consultation with more than 5,000 respondents, ministers confirmed several changes aimed at reducing administration. New electric vehicles less than three years old would not require additional mileage inspections before their first MOT. Fleet operators and leasing companies would receive simplified reporting arrangements, while businesses could use estimated mileage in certain circumstances. More flexible payment methods and bulk licensing options are also planned.
The Government has also ruled out introducing vehicle tracking. The proposed system would not record where or when vehicles are driven and would not involve permanent monitoring devices.
Industry organisations welcomed some of the administrative changes but continued to express concerns about the overall impact on electric vehicle ownership. Representatives from Electric Vehicles UK, the British Vehicle Rental and Leasing Association, and EVA England said clearer guidance and affordable charging would remain essential if the UK’s transition to zero-emission transport is to continue successfully.
Further legislation and detailed guidance will be published before the planned launch in April 2028.
What do you think about the proposed mileage-based tax for electric vehicles? Share your views in the comments or follow EyeOnLondon for the latest transport policy updates.
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