UK and New Zealand Roll Out Mileage‑Based Charges for EVs and Hybrids

The United Kingdom will introduce a pay‑per‑mile levy for electric vehicles and plug‑in hybrids starting April 2028. Drivers of selected models – including the Tesla Model Y and Model 3, Audi Q4 and Q6 e‑tron, Ford Explorer and BMW i4 – will pay 3 p per mile for EVs and 1.5 p per mile for hybrids, adding to standard vehicle tax. The charge targets owners who travel beyond the UK’s average annual mileage of about 8,000 miles and is intended to offset falling tax revenues as EV adoption rises.

In New Zealand, the government plans to shift all light vehicles onto a road‑user charge (RUC) system, removing the traditional petrol tax. Under a Ministry of Transport briefing, hybrid owners could see their contributions more than double, with a placeholder rate of NZ$76 per 1,000 km. The change would affect drivers of vehicles such as the Corolla hybrid and RAV4 hybrid, aiming to address perceived subsidies for efficient cars while raising revenue without raising fuel excise.

Both measures reflect a broader move by governments to replace fuel‑based taxation with distance‑based charges, targeting emerging vehicle technologies and raising questions about their impact on electric‑vehicle uptake and driver costs.