Question to the HM Treasury:

To ask the Chancellor of the Exchequer, how the assessment for electric Vehicle Excise Duty will differentiate between (a) petrol, (b) diesel and (c) electricity usage for plug-in hybrids.

As announced at Budget 2025, the Government is introducing Electric Vehicle Excise Duty (eVED) from April 2028, a new mileage charge for electric and plug-in hybrid cars, recognising that EVs contribute to congestion and wear and tear on the roads but pay no equivalent to fuel duty. The taxation of motoring is a critical source of funding for public services and investment in infrastructure.

eVED rates will be set at 3p per mile for electric cars, which is around half of the fuel duty rate paid by the average petrol/diesel driver, and 1.5p per mile for plug-in hybrid cars, given that they will continue to be subject to fuel duty on miles driven in petrol/diesel mode.