EV Pay-Per-Mile Tax Could ‘Inflict Severe Damage’ On UK Car Industry. The Society of Motor Manufacturers and Traders warns that a pay-per-mile levy on electric vehicles risks wiping out recent growth and undermining the government’s own push toward zero-emission transport. Chancellor Rachel Reeves is expected to announce a charge of 3p per mile for EV drivers designed to recoup revenue lost as motorists move away from petrol and diesel. But industry leaders say the measure is coming at “entirely the wrong time”, especially as EV owners already face £195 a year in vehicle excise duty. For an average driver covering 8,000 miles, annual charges would jump to £435, none of which existed last year. This warning comes despite the industry welcoming several recent pro-automotive policies, including a £2.5 billion innovation fund, improved trade arrangements with the US and India, revisions to the ZEV mandate and the new Electric Car Grant. The SMMT says today’s tax proposals risk negating that progress, threatening jobs, investment and the UK’s transition to cleaner transport.