Motorists who charge their electric vehicles (EVs) at home or at public charging points will face new costs after the government has announced a tax based on the number of miles driven, BirminghamLivereported.
The pay-per-mile system is expected to affect more than one million drivers, requiring many to pay hundreds of pounds extra each year. The number is likely to rise as more people switch to electric vehicles.
Under the plan, motorists will be taxed according to the distance they travel annually, meaning those who drive more will pay higher charges. With the average driver covering about 8,500 miles a year, the tax could amount to around £255.
The measure is aimed at offsetting the decline in fuel duty revenue as the adoption of electric vehicles grows. Ministers say petrol and diesel drivers already pay more when they travel further through fuel costs and related taxes, and argue the new charge will create a fairer system for all motorists.
The rules are scheduled to take effect in April 2028.
However, the proposal has raised concerns within the electric vehicle industry, where some fear it could discourage drivers from switching to EVs.
Simon Williams, head of policy at the RAC, said the government is likely aware that taxing plug-in vehicles per mile could slow the transition to electric transport. He added that the expansion of the Electric Car Grant may be intended to balance the impact, while falling fuel duty revenues have pushed the government to seek alternative sources of income.
