The UK government has confirmed plans to track electric vehicle mileage via GPS to enforce a new per-mile tax, marking a significant pivot in how zero-emission cars are funded.
Chancellor Rachel Reeves reaffirmed the commitment to the electric vehicle distance tax (eVED), stating that annual payments will be calculated based on actual usage data gathered through vehicle tracking systems.
The proposed levy is set to start at 3 pence per mile, with rates indexed to inflation.
This structure stands in contrast to the existing 15-year freeze on traditional fuel duty, creating a diverging cost trajectory for electric versus internal combustion engine vehicles.
The move aims to ensure that EV owners contribute to road maintenance and infrastructure costs, which have historically been funded by petrol and diesel taxes.
This development introduces a new variable into the total cost of ownership for electric vehicles.