EV Drivers Could Face New “Pay-Per-Mile” Tax Soon
There’s breaking news for electric vehicle owners in the UK — you might soon be asked to pay a new tax on every mile you drive. The government is reportedly planning a “pay-per-mile” charge on electric vehicles, set to be unveiled in this month’s Budget. The move comes as officials look to fill a growing revenue gap caused by the shift from petrol and diesel cars to greener electric options.
Currently, drivers of petrol and diesel vehicles contribute billions each year in fuel duty, which helps fund roads and public services. Electric vehicles, however, don’t use fuel in the traditional sense, leaving a shortfall in government income. A government spokesperson told the BBC, “Fuel duty covers petrol and diesel, but there’s no equivalent for electric vehicles. We want a fairer system for all drivers.”
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Under the proposed plan, EV drivers could be charged around 3p per mile. That may not sound like much, but it could add roughly £12 for a single trip from London to Edinburgh. Hybrid car owners would also face a smaller, similar charge. The system would require drivers to estimate their annual mileage and pre-pay accordingly. At the end of the year, if they have driven fewer miles, a credit could be applied, but exceeding the estimate would trigger a top-up fee.
The policy is expected to start in 2028, after a consultation period. By that time, estimates suggest there could be up to six million electric cars and vans on UK roads. This proposed charge is part of a broader effort to create a fairer tax system while continuing to support the transition away from petrol and diesel vehicles. In recent years, the government has already provided around £4 billion in incentives, including grants of up to £3,750 to make EVs more affordable.
However, the plan has not been without criticism. Shadow chancellor Mel Stride called the proposal “another tax raid,” warning that commuters and car owners could be unfairly targeted. The AA’s president, Edmund King, echoed this sentiment, advising caution so as not to slow down the shift to electric vehicles. Critics also argue that the current system — with its combination of fuel duty, road tax, and congestion charges — is confusing and could benefit from a more unified, transparent approach.
For years, EVs have been seen as a low-cost, environmentally friendly alternative, with minimal road tax contributions. But with the rise in electric car adoption and a projected shortfall in fuel duty revenue, it seems the era of free motoring for EV owners may soon be ending. As the government moves toward a “pay-per-mile” model, drivers will need to rethink not just their budgets, but also how they use their vehicles.
In short, while electric cars remain a greener choice, the costs associated with them may be about to rise, making it clear that the government is serious about balancing fairness with the ongoing transition to low-emission transport.
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