UK to Implement Electric Vehicle Mileage Tax Starting April 2028

The UK government has announced plans to introduce an Electric Vehicle Excise Duty (EVED) starting April 1, 2028, marking the country's version of a mileage tax for electric and plug-in hybrid vehicles. This system will charge three pence per mile for electric vehicles and 1.5 pence per mile for plug-in hybrids. Drivers will be able to estimate their annual mileage and pay in advance, with adjustments made after comparing their estimates to actual mileage recorded during annual vehicle inspections. Overpayments will be refunded, and underpayments will be collected accordingly. Payment options will include monthly, bi-monthly, or annual installments. The UK is also preparing tenders to develop technology enabling direct mileage reporting from vehicles, although this system is not yet technologically mature. This approach contrasts with ongoing debates in Israel, where the main challenge lies in how electric vehicle owners would report their mileage for taxation purposes, with proposals involving advance payments and later adjustments.