UK's New EV Tax By Mile Scheme Could Block Lower Income Buyers From Owning A Car

The UK government’s new pay-per-mile tax on electric cars and plug-in hybrids risks blocking lower-paid workers from accessing the salary-sacrifice schemes that make those vehicles affordable, an industry expert has warned.

 

Announced during last year’s Autumn Budget, Electric Vehicle Excise Duty (eVED) is set to introduce a 3p-per-mile charge for all EVs and 1.5p for all PHEVs from April 2028, replacing the forecast £12 billion drop in fuel duty revenue by the 2030s as drivers move out of ICE cars.