Alphabet GB has called on the Government to “pause and reconsider” its proposed electric Vehicle Excise Duty (eVED) amid major concerns that the plans risk undermining EV adoption at a critical juncture.

Caroline Sandall-Mansergh, consultancy and channel development manager at Alphabet GB, said: “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.”

Announced in the Autumn Budget and currently under consultation until 18 March, the proposals would see EV mileage data collected annually via MOT centres.

Alphabet said the assumptions underpinning this method – including capacity, administration and data handling – are “unrealistic given the scale involved”.

The mobility and fleet management firm also warned that 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 cautions 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.

Potential options include phased adjustments to existing Vehicle Excise Duty structures, or models aligned more closely to energy usage.

With the consultation deadline nearing, Alphabet has also urged fleets and industry stakeholders to make their voices heard.

Sandall-Mansergh finished: “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.”