Electric Vehicles: Excise Duties
The question
To ask the Chancellor of the Exchequer, whether her Department has made an estimate of the (a) total annual cost to businesses of administering and complying with the proposed electric Vehicle Excise Duty scheme and (b) the ratio of this figure to the expected amount of revenue raised from the scheme in each of first five years following its introduction.
Answered by Dan Tomlinson
The Government announced at Budget 2025 that electric Vehicle Excise Duty will be introduced from April 2028 to ensure all motorists continue to make a fair contribution to road usage, as fuel duty receipts decline during the transition to electric vehicles.
The Government has consulted on the design and implementation of the scheme and is considering responses. User-supplied mileage reporting and payments for eVED will be integrated into existing VED processes, to make complying with the new requirements as simple as possible for motorists.
Further detail on impacts, including on those paying eVED, will be set out once the policy design is finalised and alongside legislation.
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