Consultation published on new Electric Vehicle Excise Duty

Following the announcement at the Budget that a new electric Vehicle Excise Duty (eVED) will be introduced from April 2028, the government has published a consultation on practical aspects of how the eVED will operate.

The new charge will see owners of electric cars being charged 3p per mile travelled and owners of plug-in hybrid cars being charged 1.5p per mile travelled. This is in recognition that the money raised from Fuel Duty is expected to reduce as more drivers move over from petrol or diesel cars to electric or hybrid cars.

The consultation seeks views on how motorists could estimate their mileage and the role that technology could play in the eVED process, as well as whether the use of technology should be on an opt-in basis. The government would like to be aware of any other factors to consider in the design and scope of eVED and any guidance for owners of electric and plug-in hybrid cars.

It is proposed to use the MOT test as a way of checking actual mileage travelled. The government would be interested to hear views on whether MOT garages should be accredited to check mileage, as well as alternative approaches for cars less than three years old (which do not need an MOT). 

The consultation also explores how the eVED collection process could impact car fleets and leasing businesses and how the administration burden could be minimised.

The ATT will be responding to the consultation. If you have any views or comments please email them to [email protected] before the end of February.