Alphabet urges rethink on electric Vehicle Excise Duty

Alphabet (GB) has called on the UK Government to pause and reconsider its proposed electric Vehicle Excise Duty (eVED), warning the plans could undermine electric vehicle adoption.

The company said the current proposals risk creating operational challenges and could negatively affect consumer confidence at a critical stage in the transition to electric mobility.

Under the proposed system, electric vehicle mileage data would be collected annually through MOT centres to calculate a per-mile tax. Alphabet argues that the assumptions behind the approach, including capacity, administration and data handling, may not be realistic given the scale of the EV market.

Caroline Sandall-Mansergh, consultancy and channel development manager at Alphabet (GB), said the industry still lacked clarity on how the system would work.

“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,” she said.

Alphabet also warned that introducing a mileage-based charge could create behavioural risks such as underreporting of mileage or odometer tampering, which already affects a proportion of used vehicles.

The company said the EV market remains sensitive, with leasing companies already dealing with used electric vehicle depreciation and margin pressures. It warned that introducing a visible new tax could risk dampening demand.

Alphabet is urging the Government to work more closely with industry organisations, including the British Vehicle Rental and Leasing Association (BVRLA), to explore alternative models. These could include adjustments to existing Vehicle Excise Duty structures or approaches linked more closely to energy usage.

With the consultation deadline set for 18 March, the company is encouraging fleets and other stakeholders to contribute their views.

Sandall-Mansergh said taxation policy should support, rather than hinder, the shift to electric vehicles.

“We share the Government’s ambition for a successful transition to electric mobility, but taxation policies must be practical, realistic and supportive of growth,” she said.