The Society of Motor Manufacturers and Traders (SMMT), the trade body for the UK motor industry, published a statement on 6 November 2025 opposing a proposed pay-per-mile tax on electric vehicles. The statement describes the measure as "entirely the wrong measure at the wrong time" and warns it would deter consumers and undermine manufacturers' ability to meet zero emission vehicle (ZEV) mandate targets1.
The SMMT said it accepts the principle of reform, stating that it recognises the need for a new approach to motoring taxes, but argues the proposed regime is complex and costly and targets the vehicles manufacturers are already required to sell. It warns of "significant ramifications for perceptions of the UK as a place to invest" and calls for a fundamental rethink of motoring taxation carried out in full partnership with industry and other stakeholders1.
"Introducing such a complex, costly regime that targets the very vehicles manufacturers are challenged to sell would be a strategic mistake"
The statement was issued by an SMMT spokesperson and carries no figures for the proposed rate, no start date and no detail of how a pay-per-mile charge would be collected or administered. The SMMT's statement does not set out the level of any charge, which vehicles would be liable, or how it would interact with existing vehicle excise duty. None of these details have been reported in the statement1.
The SMMT is based at 71 Great Peter Street, London, SW1P 2BN, and is registered in England and Wales under company number 743591.
Why it matters for households
A pay-per-mile charge would change the running cost of an electric car from a largely fixed annual cost to one that rises with distance driven. For a household that has switched to electric motoring, or is considering it, the cost of each journey becomes a variable charge rather than a fixed one, which affects the arithmetic of charging at home versus filling a petrol or diesel tank.
The SMMT's objection is framed around the effect on the market rather than on individual bills: it argues the measure would deter consumers and make it harder for manufacturers to meet the ZEV mandate, the requirement on manufacturers to sell a rising share of zero emission vehicles. If the measure reduces electric vehicle sales, the supply of used electric cars, and the choice available to households, could be affected over time. The statement does not quantify any of these effects1.
The proposal sits within the wider regulation-policy landscape covering motoring taxes and vehicle standards, where changes to how electric vehicles are taxed affect the total cost of running a car at home.
What happens next
The SMMT statement does not set out a timetable, a consultation date or a decision point. It calls for a fundamental rethink of motoring taxation done in full partnership with industry and other stakeholders, but no next steps, dates or government response have been reported1.