CIHT’s submission highlights timing, fairness and implementation considerations as government explores future of motoring taxation
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CIHT has submitted its response to the consultation on the introduction of Electric Vehicle Excise Duty (eVED), published by the UK Government.
The consultation seeks views on the design and implementation of a new mileage-based charge for electric and plug-in hybrid cars, due to be introduced from April 2028. The proposed scheme forms part of wider reforms to motoring taxation, as revenues from fuel duty are expected to decline with the transition to electric vehicles.
In its response, CIHT recognises the need to ensure that motoring taxation remains sustainable over the long term as the vehicle fleet electrifies. It highlights the importance of ensuring that any new system is introduced at an appropriate point in the transition and is designed in a way that supports continued uptake of electric vehicles.
CIHT’s submission emphasises the importance of fairness and proportionality in the design of eVED. It notes differences in charging costs between those with access to home charging and those reliant on public infrastructure, as well as the particular challenges faced by some groups, including rural road users and those without access to off-street parking.
The response also highlights the need for the wider charging environment to be considered alongside the introduction of any new taxation measures. This includes factors such as the availability, accessibility and reliability of public chargepoints, and the overall user experience for drivers.
CIHT identifies the sequencing of policy interventions as an important consideration, noting that the enabling conditions for a fully equitable transition are still developing. It suggests that interim approaches to revenue replacement may be appropriate while the market matures.
The response also considers practical aspects of implementation, including the role of technology in supporting compliance, the use of existing systems such as MOT testing for mileage verification, and the importance of ensuring accessibility for all users. It highlights the need for transparency, simplicity and clear communication to support public understanding and confidence.
In addition, CIHT notes the potential importance of establishing a clearer link between motoring taxation and investment in the road network, particularly in the context of maintenance and resilience.
CIHT will continue to engage with government and stakeholders as the policy develops.
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