UK to Impose Mileage-Based Road Tax on EVs Starting 2028

The UK Treasury has unveiled the final plan for an electric vehicle (EV) road usage charge, set to implement a nationwide EV mileage tax starting April 1, 2028. Under the policy, fully battery-electric vehicles and hydrogen fuel cell vehicles registered in the UK will be charged 3 pence per mile driven (approximately RMB 0.28 per kilometer), while plug-in hybrid electric vehicles will pay 1.5 pence per mile (about RMB 0.14 per kilometer). This move positions the UK as the first country globally to introduce a nationwide, uniform mileage-based tax on electric vehicles. The charge will be adjusted annually from the 2029–2030 fiscal year onward in line with the Consumer Price Index (CPI). Based on an average annual mileage of 8,000 miles, owners of pure electric vehicles will incur an additional tax burden of approximately £240 per year—though their overall vehicle operating costs will remain lower than those of conventional internal combustion engine vehicles. The measure aims to address declining revenues from traditional fuel duties caused by the growing adoption of electric vehicles, establishing a fairer system that aligns road usage charges more closely with actual road wear and tear. New Zealand reinstated a mileage-based road user charge for EVs in April 2024; Iceland plans to implement a mileage fee for all vehicles starting February 1, 2026, while simultaneously abolishing fuel duty; and countries including Germany, Austria, and Switzerland are currently exploring similar schemes. In the United States, Hawaii has already launched a pilot program. As the EV market matures and intelligent connected vehicle technologies enable accurate mileage tracking, “pay-as-you-drive” transport taxation models are emerging as a key reform direction for many nations. However, implementation strategies will vary across countries, and governments must navigate challenges related to public acceptance, equity, and balancing the transition of the automotive industry.