UK EV owners to face pay-per-mile tax
14 days ago
- #taxation
- #transport-policy
- #electric-vehicles
- New pay-per-mile tax for electric and hybrid vehicles announced, starting April 2028.
- Electric car drivers to pay 3p per mile; plug-in hybrids 1.5p per mile, adjusted annually for inflation.
- Tax expected to generate £1.1bn in 2028-29, rising to £1.9bn by 2030-31.
- Mileage checks to be done annually, integrated into the Vehicle Excise Duty system.
- Concerns raised about potential odometer tampering ('clocking') to evade charges.
- Tax applies to UK-registered EVs regardless of where driven; foreign-registered EVs exempt in the UK.
- Industry warns tax could reduce demand for EVs, with forecasts of 440,000 fewer sales.
- Fuel duty freeze extended until September 2025, then to increase with inflation.
- Criticism from industry and environmental groups, calling the tax 'knee-jerk' and unfair.
- EV owners express frustration, citing higher costs and lack of fiscal incentives.