Is a 2-Cent Per Kilometer Tax on Electric Vehicles Coming to France? What the UK Model Reveals
Is a 2-Cent Per Kilometer Tax on Electric Vehicles Coming to France? Lessons from the UK’s Pay-Per-Mile System
As electric vehicles (EVs) gain popularity worldwide, governments face a growing challenge: replacing lost revenue from fuel taxes as combustion engine cars fade away. The United Kingdom is leading the way with a new pay-per-mile tax starting April 1, 2028, targeting EVs and plug-in hybrids. Could France follow suit with something similar, like a 2-cent per kilometer charge? Let’s break it down.
The UK’s New EV Road Tax Explained
In the UK, the upcoming electronic Vehicle Excise Duty (eVED) aims to bridge the revenue gap from declining fuel duties. Pure EVs will face a charge of about 3 pence per mile—roughly 1.9 cents or 0.022 euros per kilometer—while plug-in hybrids pay half that at 1.5 pence per mile. This is still less than half of what gas or diesel drivers pay through fuel taxes for equivalent mileage.
For context, a driver covering 8,000 miles (12,875 km) annually—a UK average—would pay around £240 (about €285) extra yearly for a full EV. This adds to the standard annual Vehicle Excise Duty (road tax), but exempts electric vans, buses, motorcycles, and heavy goods vehicles at launch.
Collection happens simply: At annual tax renewal via the Driver and Vehicle Licensing Agency (DVLA), owners self-report odometer readings. These get cross-checked against mandatory annual MOT safety inspections, avoiding invasive GPS tracking. After feedback from fleet operators and leasing companies, the system was tweaked for easier admin, like handling new or low-mileage vehicles.
Practical Tip: UK EV owners can already start logging mileage apps like Fuelly or MileIQ to prepare, making declarations seamless.
France’s Looming Revenue Shortfall
France shares the same fiscal headache. The Treasury estimates fuel tax receipts could drop by €7-10 billion by 2030 and €15-30 billion by 2050, assuming steady prices and rising EV adoption. No per-kilometer EV tax exists yet, but discussions might heat up in the 2027 finance bill.
A 2-cent per km rate could recoup roughly €250 annually from a typical driver doing 12,500 km yearly—similar to current fuel tax contributions from efficient thermals. Potential enforcement options include:
- Odometer checks at mandatory technical inspections (contrôle technique).
- Connected onboard devices for automatic reporting.
- Vehicle-to-authority data sharing from manufacturers.
Taxing home charging electricity is another idea, but it’s tricky to separate EV use from household power without smart meters distinguishing it.
Example Calculation: For 15,000 km/year at 2 cents/km: €300 total. Compare to a diesel car at €1.80/L, 6L/100km efficiency: about €162 in fuel taxes alone—EVs would still come out ahead overall with lower running costs.
Why This Tax Sparks Debate
EV advocates worry it undercuts incentives just as France pushes for greener roads via bonuses, ZFE low-emission zones, and 2035 thermal bans. Critics argue it burdens early adopters promoting the very transition governments want.
On the flip side, it’s fairer—taxing actual road use, not fuel burned. For businesses, simplicity matters: Loueurs and fleets need minimal paperwork to avoid chaos.
Actionable Advice for French EV Buyers:
- Factor potential taxes into TCO (total cost of ownership) calculators like those from ADAC or AAA.
- Opt for models with strong resale value and low weight to dodge emerging weight-based penalties.
- Track usage now to budget accurately—apps like DriveTrack work well.
- Stay informed via government sites like service-public.fr for finance law updates.
Will France Mirror the UK—or Go Its Own Way?
Don’t expect a carbon copy. France’s system is already layered with carte grise registration fees, CO2/weight malus, company car taxes, tolls, parking, and ZFE rules. A hybrid approach blending ownership taxes with usage-based ones seems likely, building on existing infrastructure.
Ultimately, the goal is sustainable funding for roads without stifling EV growth. Policymakers must balance budgets, environment, and driver wallets carefully. Watch for 2027 developments—they could redefine EV ownership costs.
