Electric Vehicles: Excise Duties
The question
To ask the Chancellor of the Exchequer, what estimate she has made of the administrative costs to HM Revenue and Customs of implementing the new taxation of electric vehicles.
Answered by Dan Tomlinson
As announced at Budget 2025, the Government is introducing Electric Vehicle Excise Duty (eVED) from April 2028, a new mileage charge for electric and plug-in hybrid cars, recognising that EVs contribute to congestion and wear and tear on the roads but pay no equivalent to fuel duty.
The Government set out estimated impacts on household incomes from tax, welfare and public service spending decisions taken at Budget 2025, including eVED. These impacts are available at GOV.UK: https://assets.publishing.service.gov.uk/media/69269c6222424e25e6bc31bb/Impact_on_households.pdf
The Driver and Vehicle Licensing Agency (DVLA) will be responsible for delivering and administering eVED, so HM Revenue and Customs will not incur additional administrative costs.
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