For years, electromobility was the absolute darling of state coffers – EV owners enjoyed impressive subsidies, tax breaks and preferential treatment, while petrol and diesel drivers bore the increasing financial burden of ever-increasing CO2 taxes. But, ah, the poor irony! This “honeymoon” seems to be coming to an end. The more electric cars flood the roads, the bigger the gaping holes in state budgets caused by disappearing fuel tax revenues.
It is precisely this inevitable financial reality that is about to be met with a radical solution in the UK. Although the United Kingdom is following the general European course of banning new internal combustion engines over the next decade, it is about to introduce a revolutionary (and controversial) tax on its electric vehicles. The information comes from the authoritative publication focus.de.
London is preparing a financial tsunami in the form of an “electric vehicle mileage tax“. As The Telegraph loudly reports, Chancellor Rachel Reeves plans to introduce an additional tax based on the distance traveled - a payment per kilometer. The details are shocking: drivers of electric vehicles will be taxed at three pence per mile (which is equivalent to about 3.4 euro cents per 1.6 kilometers).
The new tax, which is planned for 2028, will be in addition to all other vehicle-related taxes. According to the British Automobile Association (AA), this means that EV owners will pay an average of £250 extra per year (around €290). Of course, frequent drivers will be forced to dig significantly deeper into their pockets.
This drastic move is justified by the colossal success of electromobility in the UK - forecasts indicate that by 2028 there will be around six million electric cars on the roads, which logically leads to huge losses for the treasury. It is important to note that this new additional tax will also affect hybrid vehicles, although to a lesser extent, as they already pay fuel tax when using their petrol engine.
Meanwhile, the contrast in Europe is stark. While Germany is still offering pure electric cars registered by the end of 2025 a complete exemption from vehicle tax until December 31, 2030, resulting in billions of euros in losses, neighboring Austria has already taken a decisive step.
In the Alpine republic, EV privileges were abolished as early as April 2025, as electric cars were also driving “off the record” there without contributing to the wear and tear of roads and public infrastructure. The Austrians introduced a complex but fair taxation system based on the weight of the vehicle and its power. This has led to hefty annual fees, such as: VW ID.3 Pro: 514 euros / year, Tesla Model Y: 950 euros, Audi e-tron 55: 1142 euros