Mar 19 • 09:16 UTC 🇬🇧 UK Mirror

EV charging tax 'slashed' plan as drivers without driveways 'penalised'

Ministers in the UK are urged to reduce VAT on public electric vehicle charging from 20% to 5% to alleviate higher costs for drivers without home charging options amidst rising fuel prices.

In the UK, there is growing pressure on the government to reduce VAT on public electric vehicle (EV) charging from 20% to 5%. This demand arises amid concerns for drivers who do not have the option of charging their vehicles at home, making them disproportionately affected by the current pricing structure compared to those who can charge at home. This is particularly crucial as oil prices have surged due to conflicts in the Middle East, prompting calls to freeze the increase in fuel duty scheduled for September.

Advocates for electric vehicles emphasize that aligning the VAT on public charging with that of domestic charging rates is essential for promoting EV adoption. Ginny Buckley, CEO of Electrifying.com, cited a stark contrast in costs, noting that while home charging can be as little as 2p per mile, public charging can be significantly more expensive. This inconsistency in pricing can discourage potential EV users who depend solely on public charging infrastructure.

The call for lowered taxes on EV charging represents a broader trend of addressing the disparities in the EV market, particularly as it grows in popularity. Ensuring fair pricing for public charging will be crucial for achieving the UK’s sustainability goals and encouraging a wider transition to electric vehicles, especially for those who may be less able to install charging units at home due to lack of driveways or inadequate infrastructure.

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