UK electric vehicle pay-per-mile tax could cost economy £4.8 billion, industry warns
By Eve
Trade body BEAMA and charging sector groups ChargeUK, REA and EVA England have warned the UK Government that the proposed Electric Vehicle Excise Duty could cost the economy up to £4.8 billion by 2031, exceeding projected tax revenue of around £4.3 billion. The 3 pence per mile charge, due in 2028 on top of £200 annual VED, would add £255 yearly for drivers covering 8,500 miles, according to the Office for Budget Responsibility. The industry coalition cites New Zealand's similar policy, which triggered a 50 per cent drop in EV sales, and calls for a pause and further impact assessment.
Why it matters
A sharp decline in EV uptake would slow the rollout of public charging infrastructure, reducing demand for new sites and equipment procurement. Charge point operators and suppliers face revenue uncertainty if the tax dampens fleet electrification and private EV adoption ahead of the 2030 petrol and diesel phase-out.
Source
- Original title
- “EV pay-per-mile tax could cost more than it’s meant to raise”
- Published
- 5 May 2026 (date approximate)
- Updated
- 22 September 2026
In this story
- Topic
- Policy & Market
- Place
- United Kingdom
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