UK to hit EV drivers with pay-per-mile tax

Starting in 2028, electric vehicle (EV) drivers will face a new pay-per-mile tax of 3p, adding an estimated £250 annually to their costs. This move, to be announced by the Chancellor on Nov 26th, aims to offset declining fuel duty revenue as more drivers switch to EVs.

Proponents claim it's a fair approach, noting petrol drivers pay £600 annually in fuel duty. The government is developing a system where drivers estimate their annual mileage and pay accordingly. This plan is expected to generate £1.8 billion for the Treasury by 2031.

Critics, including Sir Mel Stride, argue this tax is burdensome for families during a cost of living crisis. The taxation raises questions about enforcement and potential intrusiveness.