Siobhan Doyle reported that the government is pressing ahead with a pay-per-mile tax for petrol cars through a new Electric Vehicle Excise Duty system from April 2028. Drivers of electric cars would pay a mileage-based charge alongside the current road tax system, with annual odometer readings replacing GPS tracking.
The scheme follows a consultation that drew more than 5,000 responses. Ministers changed the design to make it simpler for drivers and businesses, and the government says the approach keeps only mileage data while setting a charge that is expected to bring in around £1.2bn a year.
Electric Vehicle Excise Duty for EVs and
The new system is set to apply to fully electric cars and most plug-in hybrid models. Electric vans will remain exempt, leaving them outside the mileage charge when the scheme begins in April 2028.
Drivers will submit an annual odometer reading when they renew vehicle tax. That replaces GPS tracking or telematics, so the scheme relies on a single mileage figure rather than continuous location data. The government says the method reduces unnecessary administration and protects privacy by recording only how many miles a car has travelled.
Carwow and Siobhan Doyle
Carwow published the report on July 14, 2026, with Siobhan Doyle named as Consumer Writer. The government says the new structure is fair, proportionate and sustainable, and it is designed to replace some of the fuel duty revenue lost as more motorists switch from petrol and diesel cars.
The expected rate is 3p per mile for EVs and 1.5p per mile for plug-in hybrids. That is around half the equivalent fuel duty paid by petrol drivers, which means the lower day-to-day tax advantage of electric car ownership will narrow from 2028.
April 2028 and beyond
For drivers, the immediate step is simple: mileage will be reported when vehicle tax is renewed, not tracked continuously. The practical question now is how the system will check annual odometer readings and prevent incorrect or fraudulent mileage reporting before final legislation is introduced.
