Electric motorists hoped they had left the world of excise duties behind them, but no. The topic of electric car tax has arrived on the table of European politics with a certain insistence, and the United Kingdom is the first to show its cards. They are not particularly popular cards among motorists, but here they are.
The British government is considering a “pay-per-mile” system: you would pay 3 pence for every mile travelled. Translated into more digestible language: 0.03 pounds, i.e. approximately 0.035 euros per mile, equivalent to 0.022 euros per km. The idea is to start everything in 2028, to buffer the decline in revenue that previously came from petrol and diesel.
Let’s take an example: a driver who travels 8,000 miles a year (equal to 12,875 km) would pay 240 pounds, which in euros is around 280. Adding the annual car tax (the VED, also applied to electric cars from 2025), the total comes to 435 pounds, i.e. around 510 euros.
In fact, on the official website of the British government, it is already clear that electric cars are no longer exempt from VED: 195 pounds per year, around 230 euros, plus a five-year surcharge for cars priced above 40,000 pounds.
The problem that is stirring people up is not just economic. The most nebulous part is how to check the kilometers. According to the draft, owners would have to declare the expected kilometers in advance and, at the end of the year, pay or receive an adjustment. But it remains to be understood who will control the real data, how, and with what tools. It is a significant detail, which in fact is causing more discussion in the UK than the tax itself.
British industry isn’t up for it
The SMMT, the English manufacturers’ association, immediately rejected the proposal.
According to them, introducing an electric car tax now means:
In recent years, thanks to state incentives, the diffusion of electric cars has risen to cover 25% of new registrations. Adding a tax in such a delicate phase risks breaking a balance that had been painstakingly built.
Switzerland is studying two electric car tax models: kilometers or kWh
While London debates, Switzerland takes action. The Federal Council has opened an official consultation, expiring on 9 January 2026, to decide how to replace the revenue that currently comes from the “mineral oil tax”, i.e. from excise duties on petrol and diesel.
There are two systems on the table.
Mileage-based tax
Tax on electricity used for charging
Plug-in hybrids would pay half as much, because they are partially fuel-powered.
And as often happens in Switzerland, before becoming law, the proposal will probably also have to pass a referendum.
Italy: no electric car tax (for now)
In our country there is no proposal for an electric car tax, neither draft nor text. But the topic was clearly raised in 2024 by the Minister of Economy Giancarlo Giorgetti, during a speech dedicated precisely to the transformation of the automotive sector.
The reasoning is simple: electrification decreases the consumption of fossil fuels, excise duties decrease, but we need to rethink the entire system. The MEF, explained the minister, is already working on a review of future tax bases. However, nothing concrete. For now, one fact weighs most heavily: in Italy, electric cars represent around 5% of the total market. Too little to talk about real tax reform.
Why is this discussion exploding everywhere?
Electric mobility has a great advantage: it reduces pollution, emissions and in many cases also management costs. But it also has a side effect: it depletes one of the states’ main sources of tax revenue.
As long as we were talking about a few electric cars, the problem did not arise. Now that the numbers are growing, governments are taking action. The challenge is all here: finding a fair, proportionate model that does not penalize those who choose a cleaner means of transport, but at the same time guarantees the necessary funds to maintain roads, infrastructure and public transport.
A shared solution simply does not yet exist.
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