UK Government Plans Pay-Per-Mile Tax For Electric Vehicle Drivers. The UK government is preparing to introduce a pay-per-mile tax on electric vehicle drivers in a move to recover lost fuel duty revenues as the country shifts away from petrol and diesel cars. Reports from The Telegraph, BBC, and Financial Times suggest the plan will be announced in this month’s Budget. According to The Telegraph, drivers could be charged 3p per mile, on top of the existing £195 annual vehicle excise duty — a model insiders are calling “VED-plus.” That means an EV owner driving 8,000 miles a year would pay around £435 in total charges. A government spokesperson said the system would be “fairer,” since petrol and diesel motorists already pay tax for each mile through fuel duty. The measure, expected to take effect in 2028 following public consultation, could generate up to £1.8 billion annually by the early 2030s as electric car adoption accelerates. [Instructions: THIS VIDEO MUST NOT BE EDITED FOR LENGTH TO COMBINE WITH OTHER CONTENT]