Need to know
The new pay-per-mile tax will apply to owners of electric vehicles and plug-in hybrids and will come into force in April 2028
Rachel Reeves(Image: Getty Images)
NEED TO KNOW: Electric car drivers to be hit with new pay-per-mile tax from 2028
- Electric car drivers face a new pay-per-mile tax from April 2028 under Chancellor Rachel Reeves’ latest announcement. The Electric Vehicle Excise Duty (eVED) will charge EV owners 3p per mile and plug-in hybrid drivers 1.5p per mile. Motorists covering 10,000 miles annually will pay £300 in additional charges.
- Treasury minister Dan Tomlinson said: “Drivers will pay for their mileage alongside their existing Vehicle Excise Duty (VED).”
- The Government says the tax will counter declining fuel duty revenues as more Britons switch to electric vehicles. The consultation paper showed that the system won’t require car trackers and drivers will pay alongside their usual road tax. But critics warn it could discourage the shift to greener motoring.
- The consultation paper showed that the system won’t require car trackers and drivers will pay alongside their usual road tax.
- Meanwhile, drivers over 70 face new restrictions including mandatory eye tests and three-yearly licence renewals instead of the current ten-year period. The changes mean older drivers will automatically lose entitlement to drive medium-sized vehicles and minibuses when they renew at 70.
- READ THE FULL STORY: Rachel Reeves announces new £210 charge for EV and hybrid drivers doing 7,000 miles a year
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