Privacy concerns leave Government wary of using tech to calculate new EV tax

Privacy concerns are shaping how the UK Government plans to calculate a new electric vehicle (EV) pay-per-mile tax, with ministers preferring odometer-based estimates and manual checks rather than telematics tracking. The change is intended for EVs from April 2028, following the Autumn Budget announcement, and would charge 3 pence per mile (ppm) for zero-emission cars and 1.5ppm for plug-in hybrid EVs, with both rates rising annually with CPI. At a House of Commons policy briefing organized by the Campaign for Better Transport, Intelligent Transport Systems UK’s Max Sugarman said manual methods could be open to fraud and could unfairly affect drivers outside the UK. Kapsch’s Tim Wray said telematics is necessary and described Kapsch’s existing back-office role in London’s congestion and ULEZ systems. The scope excludes vans, buses, motorcycles, coaches and HGVs.