United Kingdom introduces EV mileage tax
Analysis based on 7 articles · First reported Feb 18, 2026 · Last updated Mar 14, 2026
The introduction of the electric vehicle excise duty (eVED) in the United Kingdom is expected to negatively impact the automotive market, particularly for electric vehicle manufacturers and owners, as it adds to the cost of ownership. This could potentially slow down the transition to electric vehicles, affecting related industries.
The United Kingdom government, through Chancellor Rachel Reeves and Treasury minister Dan Tomlinson, has announced the introduction of a new electric vehicle excise duty (eVED) set to come into force in April 2028. This pay-per-mile charge will apply to owners of electric vehicles (EVs) at 3p per mile and plug-in hybrids at 1.5p per mile. The tax aims to offset fuel duty losses due to the increasing adoption of electric vehicles and to create a fairer system where all drivers contribute. This move follows the introduction of vehicle tax for EVs last year, adding to the financial burden for electric vehicle owners.
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