It has been confirmed that electric vehicle (EV) owners will be taxed for driving abroad under Labour’s pay-per-mile plan. In a consultation response published on Monday, the Government said charging drivers for overseas mileage was proportionate because not doing so would require the use of location data to show where they were – raising privacy concerns, as reported in Highways News in May.
According to the Telegraph at the same time, officials argued only 2pc of the distance travelled by UK cars per year was abroad and said that the approach was the simplest way to ensure – as with fuel duty – that motorists are taxed based on their consumption.
However, opponents have warned that the scheme’s “absurd” design means Britons will even pay the tax while they are driving on holiday in Europe.
For example, a family travelling from Calais to Val-d’Isère, the popular ski resort in southern France, would pay roughly £37.50 for a round trip.
The Government said it would push ahead with proposals to charge EV owners 3p a mile to ensure they make a “fair contribution” to road upkeep costs. Plug-in hybrid drivers will also be charged 1.5p a mile.
The new tax will be introduced from April 2028, with a typical EV driver expected to pay about £240 per year.
Ministers say the raid was necessary to plug a projected drop in fuel duty revenues as petrol and diesel are phased out and to ensure electric car drivers are treated more similarly to those with fossil fuel-powered models
The new system will see drivers charged based on the estimated number of miles they are expected to travel per year.
If they undershoot or overshoot the figure, they will either have their “credit” carried over to the next year or be charged extra, respectively.
However, the Government admitted the pay-per-mile system would not be able to offer automatic refunds for those who overpay at launch because of “legacy” computer systems used by the Driver and Vehicle Licensing Agency (DVLA).
Labour has dropped proposals for drivers of EVs that are less than three years old to submit to independent mileage checks. Instead, drivers will self-report until their first MOT.
(Picture: Connected Kerb)
