A proposed £0.03 per mile (3 pence) tax on electric vehicles (EVs) in the UK is being considered by the government to offset lost fuel duty revenue
. The tax is intended to be introduced in 2028 and would be collected as part of the annual Vehicle Excise Duty (VED) process, with drivers estimating their mileage for the year.
- Rate: £0.03 per mile for electric vehicles.
- Reason: To replace the revenue lost as more drivers switch to EVs and no longer pay fuel duty.
- Proposed Start Date: 2028.
- Implementation:
- It would be integrated into the existing annual VED system.
- Drivers would estimate their mileage for the year and pay in advance.
- The balance would be adjusted in the following year if they drove more or fewer miles than estimated.
- Impact:
- It could cost an average EV driver around £250 a year.
- A UK journey from London to Edinburgh could cost an extra £12.