- The government is set to introduce a new pay-per-mile scheme for electric vehicles (eVED) from April 2028.
- Under the new system, fully electric cars will be charged 3p per mile, and plug-in hybrid models 1.5p per mile, both rates being lower than the current 6p per mile fuel duty for petrol and diesel vehicles.
- The eVED system will operate with an upfront charge based on estimated mileage, with options for monthly payments, and annual reconciliation against actual mileage readings from MOTs or registration anniversaries.
- Electric vehicle owners will also be liable for eVED charges when travelling abroad, as taxing based on when and where they drive has been ruled out.
- Industry bodies, including the Electric Vehicle Association England and BVRLA, have criticised the scheme as too complex, potentially deterring electric vehicle uptake, and penalising early adopters.
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