UK to Impose National Mileage Tax on EVs Starting 2028

The UK government has confirmed the introduction of an electric vehicle excise duty (eVED) starting April 1, 2028, which will levy a mileage-based tax on battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs) registered in the UK. The rate will be 3 pence per mile for BEVs and 1.5 pence per mile for PHEVs—half the BEV rate and approximately 50% of the current fuel duty paid by conventional petrol and diesel vehicles (around 6 pence per mile). The policy aims to address declining fuel duty revenues caused by the growing adoption of electric vehicles and ensure EV users contribute fairly toward road maintenance costs. According to the eVED consultation document published by HM Treasury on July 13, mileage data will be verified through a combination of odometer readings during annual MOT inspections and self-reporting by vehicle owners, with no mandatory installation of GPS tracking devices. Dealerships will offer prepayment options at the point of vehicle purchase. Based on the average annual mileage of 6,000–7,000 miles for UK electric vehicles, eVED would add approximately £180–£210 to annual tax costs. Additionally, from 2028 onward, electric vehicles will also resume paying standard vehicle excise duty (VED), significantly narrowing their current cost advantage over conventional vehicles. Industry reactions to the policy have been mixed: supporters argue the rates are reasonable, helping bridge the revenue gap while still promoting electrification; opponents, however, worry that implementing the tax as early as 2028 could dampen consumer demand, given that EV adoption rates remain relatively low.