Overview
- The government is evaluating a pay-per-mile charge of about 3 pence for electric vehicles from 2028, to be applied alongside the roughly £195 annual Vehicle Excise Duty.
- Media reports estimate the measure could raise around £1.8 billion in new revenue by 2031 if implemented.
- Illustrative calculations suggest a driver covering 8,000 miles a year would pay about £435 in total, including roughly £240 from the per-mile element.
- Early outlines describe drivers declaring expected annual mileage with credits or top-ups if they under- or overrun, though how actual distances would be verified remains unclear.
- The UK debate mirrors wider moves to replace fuel-tax receipts, with Switzerland consulting on per-kilometre or per-kWh models and Italy’s Economy Ministry exploring options.