United Kingdom to introduce mileage-based tax for electric vehicles in 2028

The United Kingdom will introduce the Electric Vehicle Excise Duty (eVED) on April 1, 2028. This new mileage-based tax targets battery-electric vehicles (BEVs), plug-in hybrids, and hydrogen fuel cell vehicles to compensate for declining fuel duty revenues as zero-emission mobility increases. Under the proposed framework, BEVs will be charged an initial rate of 3 pence per mile, while plug-in hybrids will pay 1.5 pence per mile. The government intends to use these revenues to fund road infrastructure, with estimates suggesting the tax could generate £1.1 billion in its first year.

In Europe, the automotive market is seeing a significant shift toward electrification. Data from Acea indicates that in the first half of 2026, electrified vehicles reached record market shares, with hybrids accounting for 37.3% and pure electric vehicles exceeding 20.7%. While markets like Italy and Spain have shown strong growth in hybrid adoption, Italy faces challenges in meeting long-term decarbonization targets. A report from the Italian Chamber of Deputies highlights a significant gap between the current electric vehicle fleet and the 2030 goals set by the National Integrated Energy and Climate Plan (PNIEC).