""Introducing the pay-per-mile policy early is a fiscal own goal. It will slow EV uptake, reduce EV charging investments and cost the UK economy more than the Treasury stands to raise with the taxation.""
""Research carried out by Beama suggests the Treasury could lose £630m in VAT receipts in 2028 alone, as motorists postpone EV purchases.""
Chancellor Rachel Reeves faces warnings that the new pay-per-mile tax on electric vehicles could create a £4.8bn deficit for the Treasury. A coalition of trade bodies argues that the electric vehicle excise duty, set to begin in April 2028, may suppress car sales, resulting in greater losses than gains. The Treasury anticipates £1.1bn in revenue for 2028-29, but research indicates potential VAT losses of £630m in the same year. The policy could negatively impact small and medium-sized enterprises in the EV sector.
Read at Business Matters
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