In the UK, from 2028, a per-kilometre tax will be introduced for electric and plug-in hybrid vehicles

From 1 April 2028 the UK will introduce a mileage tax on electric vehicles with the stated aim – as reported by the Office for Budget Responsibility (OBR) – of offsetting the loss of revenue from fuel duties resulting from the widespread adoption of battery-powered vehicles.

Known as Electric Vehicle Excise Duty (eVED), this measure - as reported online - will apply to both battery electric vehicles and plug-in hybrids, as well as those fitted with hydrogen fuel cells (Hfcev). The tax rates will be 3 pence per mile (equivalent to 4.4 – 4.8 euro cents per km) for battery electric vehicles (BEVs) and 1.5 pence per mile (2.2–2.4 euro cents per km) for plug-in hybrid models (PHEVs). Over 100 km, the cost will therefore range from 2.2 to 4.4 euros.

In accordance with the provisions set out by the Government, the rate will be adjusted between 2029 and 2030 and in subsequent years, to keep pace with consumer price inflation, thereby ensuring that the tax retains its real value. To renew the electronic road tax (eVED), which is administered by the Driver and Vehicle Licensing Agency (DVLA), and to calculate the amount of eVED payable at the same time, drivers will need to: provide their car’s odometer reading and estimate the mileage travelled over a one-year period. Motorists will pay an advance amount based on their estimate, or they may spread the payment over the course of the year, with the mileage reading at the end of the year triggering a final adjustment.

Currently, data relating to car mileage is collected during annual MOT tests and is generally available on the Gov.UK website. Where applicable, the Government intends to use this data to ensure that the mileage declared by users is consistent and up to date. This means that, if a car has already undergone an MOT test, further checks will generally not be necessary. According to official estimates, the eVED scheme is expected to generate revenue for the Treasury of 1,100 million pounds from the 2028–2029 financial year onwards, a figure that will rise to 1,435 million in 2029–2030 and to 1,865 million in 2030–2031.