UK introduces EV pay-per-mile tax

The United Kingdom government, led by United Kingdom — HM Treasury and Chancellor Rachel Reeves, announced the introduction of a new pay-per-mile car tax system, named Electric Vehicle excise duty (eVED), targeting Electric vehicle and Plug-in hybrid owners. This tax, set to come into effect in April 2028, will charge Electric vehicle owners 3p per mile and Plug-in hybrid owners 1.5p per mile. The move is a response to declining fuel duty revenue as more motorists switch to electric vehicles. Treasury minister Dan Tomlinson outlined the plans, confirming that the tax will not require in-car trackers and will be paid alongside existing Vehicle excise duty (VED). The new tax is expected to increase running costs for Electric vehicle owners, with a driver covering 10,000 miles annually paying an additional £300.