Major car tax changes are "desperately needed" as certain drivers and motorists are targeted with higher fees. Experts continue to call for an urgent cut in electric car tax VAT rates as the Cost of Living crisis continues up and down the country.
Denis Watling, Managing Director at ChargeGuru UK, has spoken out to demand an urgent reduction in electric car VAT rates as more and more drivers ditch petrol and diesel. Denis stressed that the UK’s electric vehicle transition would become “more challenging” without a cut in VAT rates ahead of the diesel and petrol 2035 ban.
Denis warned in a statement to the traffic and travel industry: "Reducing the 20 percent VAT rate is a vital step in democratising the charging experience. Not everyone has access to home charging at the five percent rate, and it's these individuals that desperately need the support of the Government to make the switch.
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“Transitioning towards EVs in the next decade is a landmark environmental policy of the UK Government, and will be made all the more challenging without a proper reduction in VAT. The EV industry must jointly lobby - regardless of whether they offer home or public charging - for affordable and accessible charging."
Denis said this needs to be done "in order to ensure the number one priority is met - to help people choose greener transport." Electric car drivers will start paying car tax from 1 April 2025, when the new Vehicle Excise Duty rules come into force.
Electric cars are not exempt from Vehicle Excise Duty. They still have to be taxed, it’s just that right now it doesn’t cost anything. But, practically, you don’t have to pay anything for car tax on an electric car. But that changes from next year, motoring groups and traffic experts have said.
