ALPHABET (GB) is calling on the UK Government to pause and reconsider its proposed electric Vehicle Excise Duty (eVED), warning that the current plans risk undermining EV adoption at a critical point in the transition.
Under the proposals, EV mileage data would be collected annually via MOT centres. Alphabet believes the assumptions underpinning this method – including capacity, administration and data handling – are unrealistic given the scale involved. The industry has yet to receive clarity on systems, processes, cost allocation or the infrastructure required to support secure, accurate reporting.
“We fully recognise the need for the Government to replace declining fuel duty revenues. However, the current eVED proposal raises some serious concerns. We believe now is the time to stop and rethink the approach before irreversible damage can be done to EV uptake.”
Beyond the operational burden, Alphabet warns that a new per-mile charge could negatively affect consumer sentiment, given the EV market’s fragility. Leasing companies are already having to face the impacts of used EV depreciation and margin pressures and introducing a complex and highly visible new tax could risk suppressing demand further.
There are also significant concerns about unintended behavioural consequences. Mileage-based taxation creates incentives for underreporting and odometer tampering, an issue that already affects a notable proportion of used vehicles in the UK.
The company is encouraging the Government to engage closely with industry bodies sharing a similar view, including the British Vehicle Rental and Leasing Association (BVRLA), and to consider alternative frameworks that are simpler to enforce and less susceptible to fraud. Options such as phased adjustments to existing Vehicle Excise Duty structures, or models aligned more closely to energy usage, could be considered.
With, the consultation deadline approaching on 18 March, Alphabet is urging fleets and industry stakeholders to make their voices heard. The consultation can be found here.
Sandall-Mansergh concluded: “We share the Government’s ambition for a successful transition to electric mobility, but taxation policies must be practical, realistic and supportive of growth. A rushed or overly complex system risks slowing adoption, deterring investment and placing unnecessary strain on an already stretched sector. There is still time to get this right.”
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Russell Hayes’ early career was 14 years of motoring journalism in print (for What Car?), television (for Top Gear), as well as online. Since 2007 he has authored 12 motoring history books on subjects including TVR, the Earls Court Motor Show, the Volkswagen Golf and Aston Martin – see Russell Hayes on Amazon. However, he’s not forgotten how to be a motoring journalist and now writes for UK consumer motoring sites – not to mention Broker News. When he’s not writing, Russell can be found in the cinema or planning his next travel adventure.
