Autumn Budget 2025: The government is to introduce a mileage charge for electric and hybrid cars from April 2028.
The electric vehicle excise duty will require drivers to pay for their mileage alongside their existing vehicle excise duty.
The government has published a consultation, which provides further detail on how the electric vehicle excise duty will work and is seeking views on its implementation. It will work closely with industry and motoring representative groups on delivering the new tax.
In order to ensure electric vehicles (EV) remain an attractive choice for drivers, the tax paid by EV drivers will be around half the fuel duty rate paid by the average petrol or diesel driver, with a reduced rate for plug-in hybrid drivers.
When the duty comes into effect, an average EV driver will pay around £240 per year or £20 a month.
Paul Holland, managing director for UK/ANZ fleet at Corpay, said: “The government has confirmed a new EV mileage tax from 2028, charging 3p per mile for battery electric vehicles and 1.5p per mile for plug-in hybrids. This is completely the wrong move at the wrong moment. If you increase the cost of running an EV, people will simply delay switching.”
