US EditionElectric vehicle owners to face pay-per-mile tax
The UK government aims to raise about £1.4 billion annually from a new mileage tax on electric and hybrid vehicles starting in April 2028, increasing with inflation.
- Ahead of the Budget, a leaked Office for Budget Responsibility document revealed a new mileage charge for battery electric and plug-in hybrid cars starting April 2028, rising annually with inflation, and the OBR apologised for the leak.
- The government says shrinking fuel‑duty revenue is prompting the Chancellor to introduce a tax expected to raise £1.9 billion in 2030-31, with estimates of £1.1 billion in 2028-29, and hopes of £1.4 billion.
- The policy sets the charge at 3p per mile for battery electric cars and 1.5p for plug‑ins, and an average driver would pay about £255 this year, half the petrol and diesel fuel duty rate.
- The OBR's own forecast predicts around 440,000 fewer electric car sales across the forecast period, with 130,000 offset, while London Mayor Sir Sadiq Khan and Emma Best pledged opposition last week.
- With fuel duty frozen and VAT on public charging , campaigners warn implementation must be carefully designed to ensure fairness for drivers who cannot charge at home.
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Electric vehicle owners face new pay-per-mile tax. What could be the environmental costs?
Modern electric vehicles are transforming the roads with low noise, rapid acceleration and zero exhaust emissions. However, drivers of electric vehicles in the UK will now face a new 3p per mile charge and drivers of hybrid vehicles a 1.5p per mile charge.
Pay-Per-Mile Tax for Electric Cars from 2028 Confirmed in Budget
Electric vehicles will be subject to a pay-per-mile charge from April 2028, Rachel Reeves confirmed in the Budget today, in a move that the OBR says will lead to 440,000 fewer EV sales in the next five years. The post Pay-Per-Mile Tax for Electric Cars from 2028 Confirmed in Budget appeared first on The Daily Sceptic.
Electric vehicle owners face new pay-per-mile tax – what could be the environmental costs?
Standret/ShutterstockModern electric vehicles are transforming the roads with low noise, rapid acceleration and zero exhaust emissions. However, drivers of electric vehicles in the UK will now face a new 3p per mile charge and drivers of hybrid vehicles a 1.5p per mile charge. In her speech, chancellor of the exchequer Rachel Reeves said: “All cars contribute to the wear and tear on our roads, drivers will taxed on how much they drive not just o…
Electric vehicle owners to face pay-per-mile tax
45 minutes agoShareSavePritti MistryBusiness reporterShareSaveGetty ImagesA new tax for electric and hybrid vehicles has been announced by the chancellor in her autumn Budget.Electric car drivers will pay a road charge of 3p per mile, while plug-in hybrid drivers will pay 1.5p per mile from April 2028, with the rates going up each year with inflation.The new tax is about “half the fuel duty rate paid by drivers of petrol cars”, according to the …
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