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Electric vehicles face new pay-per-mile levy

06-11-2025

In her Budget later this month, the Chancellor will announce plans to tax drivers of electric cars under a new pay-per-mile scheme set to be introduced in 2028 after a consultation. EV drivers will be charged 3p per mile on top of other road taxes. The move comes as Treasury receipts from fuel duty fall as more people make the shift from petrol to electric vehicles. An annual fee will be charged on estimated travel, according to the Telegraph, removing the need for surveillance. Drivers of hybrid cars will also have to pay the charge, but at a lower rate. However, the paper suggests the change will pave the way for the wholesale adoption of pay-per-mile taxation for all cars, raising questions about enforcement.

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