UK to tax every mile driven by electric cars from 2028

UK to tax every mile driven by electric cars from 2028

The British government has given the green light to a tax that will charge electric vehicles for every mile they drive from 2028, as several specialist outlets have reported. The measure, still in the design phase, would initially apply only to BEVs (battery electric vehicles), leaving out plug-in hybrids (PHEV/EREV), which gives the latter an immediate competitive advantage.

The stated aim is to offset the fall in revenue from fuel duty. As one industry analysis notes, "someone has to pay the tax that is no longer paid for driving electric". And indeed, by common estimates, more than half the price of petrol goes to taxes (fuel duty and VAT). The state needs a new source of revenue as the electric fleet grows.

Plug-in hybrids, the big winners (for now)

The initial bias in favour of PHEVs is no accident. Since they can cover most daily trips in electric mode and are also exempt from the new levy, they become the most rational option from a tax perspective. "The funny thing is that only pure electrics would pay it," one well-known analysis quips. "Plug-in hybrids wouldn't pay it, which would make them the more attractive choice." But everything suggests this is only the beginning: once the pay-per-mile mechanism is in place, extending it to all other vehicles is only a matter of time.

London, the laboratory of paid mobility

The precedent of the London congestion charge shows where transport policy is heading. Driving into central London already costs a substantial amount, regardless of vehicle type. Supporters of the measure argue that "electric cars consume a lot of resources and this isn't reflected in the price", while critics see an inevitable "squeeze" to keep revenue flowing. In any case, the debate reflects a growing tension between the ecological transition and the need to fund the state.

With this new tax, the UK positions itself at the forefront of a model that other countries will probably copy. For now, owners of pure electric cars have reason to feel singled out. And plug-in hybrid manufacturers have reason to smile.