London:The UK government has confirmed that electric vehicle owners will begin paying a mileage-based road tax from April 2028 under a new Electric Vehicle Excise Duty (eVED) system, following a public consultation on the proposal.
Under the new scheme, drivers of fully electric cars will pay 3 pence per mile, while owners of plug-in hybrid vehicles will pay 1.5 pence per mile, reflecting the fact that hybrid vehicles continue to pay fuel duty on petrol or diesel used. The rates remain below the estimated 6 pence per mile paid by petrol and diesel vehicle owners through fuel duty, Irish News reported.
The government said motorists will estimate their annual mileage and either pay the charge upfront or spread the payments over 12 months, similar to the existing Vehicle Excise Duty (VED) system. At the end of the year, drivers will submit their actual mileage, which will be verified through annual MOT inspections or vehicle registration checks for newer cars before any outstanding balance is settled.
Buyers of new electric vehicles will also have the option of including the estimated eVED charge in the vehicle’s on-the-road price or paying it separately.
The government has ruled out charging motorists based on when or where they drive, meaning electric vehicle owners will continue to pay the mileage-based tax even when travelling abroad. It also said it welcomes further work on the use of onboard telematics that could automatically transmit mileage data in real time, although such a system is not part of the initial rollout.
The new tax has drawn criticism from industry groups. Vicky Edmonds of Electric Vehicle Association England said the revised system remained too complicated and could leave some motorists paying more than expected.
“The government has made one welcome change for newer EVs, but the wider scheme remains too complex, risks leaving people out of pocket and fails to give drivers the confidence they need,” she said.
Edmonds added that, at a crucial stage in the transition to electric mobility, the government should focus on making the taxation system “simpler, fairer and easier to understand” rather than proceeding with a policy whose major shortcomings remain unresolved.
