Government confirms eVED tax after consultation
The government has confirmed it will introduce Electric Vehicle Excise Duty (eVED) from April 2028.
Following a consultation on the proposed tax, drivers of electric cars will pay 3p per mile while hybrid drivers will pay 1.5p per mile.
Drivers will be obliged to estimate their annual mileage when renewing eVED, with MOT records used to verify mileage.
However, drivers of cars under three years old will not be required to have annual mileage checks, while fleets will be allowed to bulk pay to simplify administration.
Support
The government said: “There was support for the principle that motorists who drive more should make a greater contribution. The key concerns raised were around the potential impact on electric vehicle uptake and the administrative complexity for motorists, businesses, fleets, leasing companies and MOT garages.
“The government has carefully considered the consultation responses and refined the proposed design. In particular, the government will not proceed with the proposed requirement for vehicles under three years old, which are not currently required to have an annual MOT, to have additional mileage checks.
“The government has also significantly simplified the arrangements for fleets and leasing companies to reflect the way these businesses manage large vehicle fleets. This includes allowing the use of estimated mileage readings, introducing bulk licensing arrangements and providing greater payment flexibility.
“Together, these changes will make eVED simpler to comply with while ensuring it remains a fair, proportionate and sustainable approach to motoring taxation.”
Eviscerate demand
Despite the amendments, eVED has received a cool response from industry.
Toby Poston, BVRLA chief executive, said: “This poorly designed and scheduled tax would pile extra cost and bureaucracy onto fleets and drivers and eviscerate EV demand.
“It is great that the government has taken some of the roughest edges off its eVED plans, but there is no avoiding the fact that you can’t create a smooth switch to electric vehicles by making them more expensive to own. The mechanics of the tax may have improved, but the timing is still wrong.”
Unwelcome expense
Peter Golding, CEO, FleetCheck, added: “We welcome the fact the government has made a series of concessions on the practicalities of eVED implementation that could potentially make life easier for fleets but it doesn’t change the core objection that the whole idea is probably just too much, too soon when it comes to electrification for both fleet and private buyers.
“Just at the point in time when electric cars should be starting to feel like the natural choice for buyers, this is unwelcome expense and complication.”
