UK confirms pay-per-mile tax for electric cars from April 2028
By Eve
The government will introduce an Electric Vehicle Excise Duty system from April 2028, charging EV drivers 3p per mile and plug-in hybrids 1.5p per mile based on annual odometer readings. Following a consultation with over 5,000 responses, the scheme will apply to electric cars but exempt electric vans, with rates set at roughly half the equivalent fuel duty paid by petrol drivers. The mileage-based charge will run alongside existing road tax to replace fuel duty revenue as motorists switch to electric vehicles.
Why it matters
The new tax structure will affect total cost of ownership calculations for fleet operators and workplace charging schemes from 2028, potentially influencing procurement decisions for electric vehicles and the business case for charging infrastructure investments. CPOs serving commercial fleets may need to adjust pricing models and customer communications as operating costs for electric vehicles shift from fuel savings to mileage-based taxation.
Source
- Original title
- “Government takes next step towards pay-per-mile tax for EV drivers”
- Published
- 14 July 2026
- Updated
- 31 July 2026
- Also covered by
- automobile-propre.com · electrive.com · evfleetworld.co.uk · fleetworld.co.uk · fuelcellsworks.com · highways-news.com · thedriven.io · transportandenergy.com · and more via Google News (1, 2)
In this story
- Topic
- Policy & Market
- Place
- United Kingdom
- Tag
- Government
Related news
UK Government considers tariffs of up to 40% on Chinese EVs to align with EU trade policy
The UK Government is reportedly considering tariffs of up to 40% on Chinese electric vehicle manufacturers, following meetings between Greater Manchester Mayor Andy Burnham and German Chancellor Friedrich Merz in Berlin. The move aims to align the UK with the EU's Made in Europe legislation. MG Motors' commercial director warned that such tariffs would drive up consumer prices and potentially increase inflation and interest rates.
Why it matters
Higher EV prices from tariffs could slow fleet electrification and reduce demand for charging infrastructure, while policy alignment with the EU may reshape which vehicle brands dominate the UK market and influence CPO site planning.
EU to cap Chinese hybrid imports at 350,000 vehicles per year from December
The European Commission has confirmed a quota limiting Chinese hybrid electric vehicle imports to 350,000 units annually, down from an expected 800,000 battery and plug-in hybrids this year. The measure, agreed in Beijing last week and enforceable from December under WTO safeguard rules, aims to halve China's EU market share from 6% to 3% over a four year period. Volkswagen's leadership has backed the plan to support domestic manufacturing.
Why it matters
The quota will reshape EV supply chains and may accelerate local manufacturing investment by Chinese OEMs seeking to maintain EU sales, directly affecting charging infrastructure planning as fleet composition shifts. CPOs and site hosts should anticipate changes in vehicle mix and charging demand patterns as the policy takes effect.
Australian energy regulator backs network-funded kerbside EV charger rollout
The Australian Energy Market Commission has granted preliminary approval for a plan to install 14,000 kerbside EV chargers on power poles in underserved areas, funded through household electricity bills. Network operators have pushed the proposal for years, arguing it will address charging black spots in major cities where private deployment is not commercially viable.
Why it matters
The decision creates a regulated utility-led procurement pathway for thousands of charge points in Australia, potentially opening new installation and equipment supply opportunities in areas private CPOs have avoided. The funding model through consumer bills removes commercial risk for network operators entering the charging market.