Per-Mile EV Tax Starts in UK in 2028 — France Could Be Next

From April 2028, UK electric car drivers will pay 3p per mile under a new levy designed to replace fuel duty. France faces a €13bn annual shortfall by 2035, putting a similar tax on the agenda.

UK’s 2028 Per-Mile Tax on Electric Vehicles: What We Know

The UK government will introduce a per-mile charge on electric vehicles (EVs) and plug-in hybrids from April 2028, officially called the Electric Vehicle Excise Duty (eVED). Pure battery-electric cars will be taxed at 3 pence per mile (approximately 2.2 euro cents per kilometre), while plug-in hybrids will pay 1.5 pence per mile.

The levy is designed to recoup the revenue lost from falling fuel-duty receipts as more drivers switch to electric. Drivers must declare their annual mileage when renewing their vehicle registration, and the reading will be checked at the MOT inspection to settle any under- or overpayment. For a typical motorist covering 15,000 miles a year, the new tax will add around £450 to annual running costs.

The UK is not alone: New Zealand and Iceland already operate distance-based charges for EVs. But the issue has particular resonance in France, where the Direction Générale du Trésor warns the shift to electric could create a €13 billion annual tax shortfall by 2035, rising to over €30 billion by 2050. While no per-kilometre tax is currently planned in France, the sums involved mean policymakers may eventually have to consider similar measures.

Why Fuel Duty Revenue Is Driving the Move to Per-Mile Charging

The £1bn Fuel Duty Hole

The UK Treasury expects the eVED to raise over £1 billion in its first full year, directly compensating for an erosion of fuel duty that currently generates around £25 billion annually. As EV adoption — already over 20% of new car sales — accelerates, the government cannot ignore the fiscal gap. The tax is structured to mirror the per-mile fuel costs of a petrol car: at 3p per mile, a driver paying 52.95p per litre in duty and driving a car that does 50 mpg would have paid a similar amount in fuel tax.

How the UK’s Approach Compares

New Zealand’s Road User Charge for EVs is closer to 8 cents (NZD) per kilometre, while Iceland’s is around 6 ISK per km, but both are flat per-km fees. The UK’s decision to use a per-mile model, rather than a flat annual fee, keeps a direct link between usage and payment. The administrative mechanism — self-declaration at registration renewal backed by an odometer check at the MOT — is a pragmatic first step, though it may face challenges if annual mileage fluctuates significantly or if drivers underestimate their journeys.

France’s Fiscal Calculus

French officials have not yet proposed a distance-based tax, but the Trésor’s projections make the arithmetic compelling. A €13bn shortfall by 2035 would be equivalent to roughly 12% of total fuel-tax revenue today. The French government could consider a per-kilometre levy, a higher registration surcharge on EVs, or a combination. The UK experiment will be closely watched in Paris as a test case for how to introduce such a tax without discouraging the EV transition.

What UK and French Drivers Should Do Now About the EV Mileage Tax

Practical Steps for EV Drivers

Calculate your likely eVED bill: Multiply your annual mileage (in miles) by 0.03 for a pure electric car or 0.015 for a plug-in hybrid. For example, 10,000 miles would cost £300; 15,000 would cost £450. Build this into your budget from 2028.
Keep accurate mileage records: The eVED system relies on self-declaration at registration renewal and odometer checks at the MOT. Maintaining a log of your mileage can help avoid disputes and ensure you pay only what you owe.
Factor future tax risk into a new car purchase in France: While no per-km tax is confirmed, the €13bn shortfall by 2035 makes it a plausible scenario. If you are buying an EV today, consider adding an estimated per-km cost (similar to the UK’s 2.2c/km) to your total-cost-of-ownership calculation. At 15,000 km a year, that would be about €330.
Watch for specific policy developments: In the UK, respond to any government consultations on eVED enforcement and exemptions before 2028. In France, keep an eye on the annual finance bill for any mention of road-pricing reform, as the fiscal gap will be an increasingly pressing issue.