The UK government has given the green light to a new pay-per-mile car tax scheme, with a start date of April 2028, that will see drivers covering 10,000 miles a year charged approximately £300. The system, known as eVED, has sparked warnings of 'big questions' surrounding its implementation.
Details of the New Tax
The Labour government's eVED road-tax system will feature an opt-in telematics component, allowing vehicles equipped with 4G and 5G technology to wirelessly transmit mileage data to government databases. This approach aims to simplify the operation of eVED and reduce administrative burdens on motorists, according to the government.
However, Steve Walker, head of digital content at Auto Express, stressed that officials still need to answer critical questions. He stated: 'It risks breeding yet more uncertainty in an already confusing marketplace, with big questions around the implementation of the tax, collection of mileage data, how it will be levied on plug-in hybrids and whether foreign registered vehicles will escape the charge completely remaining unanswered.'
Consultation Responses and Stakeholder Views
Silviya Barrett, director of policy and research at the Campaign for Better Transport, who contributed to the eVED consultation, explained to Auto Express in May: 'You’d be able to tell what proportion of people are driving in electric mode, versus petrol.' However, the government's consultation response deemed such a concept 'not a practical or proportionate approach,' instead opting for a reduced rate for plug-in hybrid electric vehicles (PHEVs) to balance fairness, privacy, and administrative burdens.
Barrett added: 'We’re pleased that the Government has listened to stakeholders about the need to provide more choice in how vehicle mileage can be reported. Drivers opting to use their vehicle’s existing telematics technology will benefit from a quicker, easier-to-use and more accurate system.'
Industry Reactions
Tanya Sinclair, CEO of Electric Vehicles UK, commented: 'The Government has listened where it matters. Dropping mandatory mileage checks for cars under three years removes a significant speed bump that would have been a burden on new drivers and big fleets.'
The new tax is expected to affect millions of drivers, with the £300 figure based on 10,000 miles annually. The scheme's success will depend on addressing the unresolved issues highlighted by experts and stakeholders.
