There is still time to get eVED right

Alphabet (GB)’s Caroline Sandall-Mansergh is urging government to rethink Electric Vehicle Excise Duty

Business mobility provider 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 electric vehicle (EV) adoption at a critical point in the transition.

Alphabet (GB) fully recognises 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.

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.

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.

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.

Caroline Sandall-Mansergh is consultancy and channel development Manager at Alphabet (GB)

Founded in 1997 as a division of BMW Group, Alphabet has extensive knowledge of international fleet management and leasing. Its comprehensive portfolio includes consulting and funding as well as smart management products and services for company fleets.