The UK government is introducing a pay-per-mile road tax (eVED) for electric cars (EVs) starting April 2028, charging 3 pence per mile for battery-electric vehicles and 1.5p for plug-in hybrids (PHEVs), which will be collected annually alongside Vehicle Excise Duty (VED) through mileage checks, aiming to replace lost fuel duty revenue but raising concerns about fairness, privacy, and potential impacts on EV adoption.
Key Details of the New Tax (eVED)
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Key Details of the New Tax (eVED)
- Rate: 3p per mile for pure EVs, 1.5p per mile for PHEVs.
- Implementation: From April 2028.
- Collection: Mileage will be recorded during annual MOTs or at registration anniversaries, with payment integrated into the existing VED system.
- Inflation: Rates will increase annually with the Consumer Price Index (CPI).
- Estimated Cost: Around £250 annually for an average EV driver (based on 8,000-8,500 miles).
- Revenue Replacement: The tax aims to offset declining fuel duty revenue as more drivers switch to electric.
- Fairness: Some argue it's unfair to charge EVs when petrol/diesel cars still pay fuel duty, while others note it's still cheaper than petrol/diesel costs, say This is Money.
- Administration: The government is consulting on how to prevent odometer tampering.
- Impact on PHEVs: Hybrids face "double taxation" (fuel duty + eVED).
- Privacy: Concerns exist about potential future tracking technologies, though current plans focus on MOT checks.
- EVs currently pay the standard VED rate (£195/year) but are exempt from fuel duty.
What do you think about this?