UK Auto Industry Criticizes New EV Excise Duty Plan
The UK auto industry has expressed strong criticism over the government's recent announcement of a new annual tax on electric vehicles and plug-in hybrids, set to take effect in 2028. The proposed levy aims to address declining revenues from petrol and diesel fuel taxes as electrified vehicles become more prevalent.Key TakeawaysThe new tax will impose a 3 pence per mile charge for electric cars and a 1.5 pence per mile charge for plug-in hybrids from 2028.The Society of Motor Manufacturers and Traders (SMMT) argues that the measure could suppress demand, making it harder to meet ambitious sales targets for EVs.Details on how the tax will be measured and enforced remain unclear, with no specifics provided regarding implementation.In a move reminiscent of past fiscal policies, the UK governm...
