UK to levy mileage‑based tax on electric vehicles from 2028
The United Kingdom government confirmed that a new Electric Vehicle Excise Duty (eVED) will charge drivers of fully electric, hydrogen and plug‑in hybrid cars based on the distance they travel. The tax starts on 1 April 2028 and adds to the existing Vehicle Excise Duty. Rates are set at three pence per mile for pure electric and hydrogen vehicles and 1.5 pence per mile for plug‑in hybrids, with future adjustments indexed to inflation from the 2029/30 fiscal year.
Owners will report their odometer reading when renewing their road tax and provide an estimate of next‑year mileage; the final amount is reconciled at the end of the period. No GPS tracking is required. An average EV driver covering about 8,500 miles a year would pay roughly £255 (about €280‑300) annually. The Treasury expects the scheme to generate about £1.4 billion in revenue by the end of the decade and has earmarked £3.6 billion for supporting electric‑mobility initiatives. The policy is intended to offset the loss of fuel‑ duty revenues as electric‑vehicle uptake reduces gasoline consumption, a challenge being discussed across Europe.
Entities: Driver and Vehicle Licensing Agency (DVLA) · Fuel duty · Rachel Reeves · UK Government · United Kingdom · eVED (electric Vehicle Excise Duty) · electric vehicle owners · electric vehicles
Claims
What the coverage asserts, and how well corroborated each claim is across sources.
- [● 4 SOURCES] The United Kingdom will introduce a mileage‑based tax for electric vehicles (eVED) starting 1 April 2028. (New policy announced by the UK Treasury)
- [● 2 SOURCES] An average EV driver covering about 8,500 miles per year will pay roughly £255 annually. (UK Treasury revenue estimates)
- [○ 1 SOURCE] The government has allocated a £3.6 billion support package for electric‑mobility programmes. (UK Budget announcement)
- [● 4 SOURCES] The tax rate is three pence per mile for fully electric and hydrogen vehicles. (UK government specifications)
- [○ 1 SOURCE] The mileage tax is projected to raise about £1.4 billion by the end of the decade. (UK Treasury forecast)
- [● 3 SOURCES] Tax rates will be indexed to inflation from the 2029/30 fiscal year onward. (UK Treasury policy)
- [● 4 SOURCES] Plug‑in hybrid vehicles will pay 1.5 pence per mile. (UK government specifications)
- [● 3 SOURCES] The tax is collected via odometer readings submitted at vehicle tax renewal, without GPS tracking. (UK Treasury implementation details)