Overview
- HM Treasury says a new electric Vehicle Excise Duty will start in April 2028 and be collected alongside standard vehicle tax.
- Rates are 3p per mile for electric cars and 1.5p for plug-in hybrids, which would cost about £300 a year for 10,000 miles in an EV.
- The charge applies to UK-registered cars on all miles, including overseas travel, with motorcycles and vans excluded at the start.
- Officials say the levy ensures EV and hybrid drivers contribute to the roads like petrol and diesel owners who pay fuel duty.
- A Zenith poll of 3,000 road users found 74% worry about costs and 40% might return to petrol or diesel, as industry groups warn long-distance and rural drivers could be hit hardest.