Summary
The UK government plans to introduce a pay-per-mile tax for electric vehicles (EVs) starting in April 2028 as part of efforts to phase out petrol and diesel cars by 2030. The tax will be 3 pence per mile for electric cars and 1.5 pence per mile for plug-in hybrids, with increases expected due to inflation. Some worry this could reduce interest in switching to EVs.
Key Facts
- The UK government will start charging EV drivers 3 pence per mile from April 2028.
- Plug-in hybrid drivers will pay 1.5 pence per mile under the new plan.
- The plan aims to phase out new petrol and diesel car sales by 2030.
- Charnjit Saranna from EZOO, an electric car leasing firm, expressed concerns that the tax might make EVs less attractive.
- The Office for Budget Responsibility anticipates the tax could decrease demand for EVs due to increased lifetime costs.
- Despite the tax, EVs are still expected to cost less than petrol and diesel cars in the long run.
- An EV driver traveling 8,500 miles in a year would pay about £255 under the new tax.
- The tax rates will rise with inflation each year after introduction.
