Electric Vehicles: Taxation
The question
To ask the Chancellor of the Exchequer, what assessment she has made of the annual cost to the logistics industry of the proposed pay-per-mile electric vehicle charging scheme.
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 electric vehicles (EVs) contribute to congestion and wear and tear on the roads but pay no equivalent to fuel duty. The taxation of motoring is a critical source of funding for public services and investment in infrastructure.
All UK-registered electric and plug-in hybrid cars will pay eVED. Other vehicle types such as vans, buses, coaches, motorcycles and HGVs will be out of scope of the tax upon its introduction. This is because the transition to electric for these vehicle types is less advanced than for cars at this stage.
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