The National Franchised Dealers Association (NFDA) has raised concerns over the Government’s new Electric Vehicle Excise Duty (eVED).
It believes the extra charges could discourage consumers moving to an electric vehicle, presenting challenges exactly when EV adoption is such a key objective.
The new system, in place from April 2028, will charge EV drivers 3 pence per mile and PHEV drivers 1.5 pence per mile, with payments administered through the existing Vehicle Excise Duty process.
Motorists will be required to provide an odometer reading and estimate their annual mileage when renewing their vehicle tax, with the Driver and Vehicle Licensing Agency (DVLA) calculating the amount due and mileage later verified through the MOT process.
The Government has also confirmed that additional mileage checks for vehicles under three years old will not be introduced, minimising admin for motorists.
Sue Robinson, chief executive of NFDA, said: “The industry is working harder than ever to encourage greater EV uptake; eVED risks that additional costs for EV ownership could deter consumers from making the switch.
“We’re concerned at the overcomplexity, the burdening cost to the industry and the reliance on the accuracy of the data.”
