Car tax changes would help dozens of motoring save a “considerable” amount of money to use the roads, according to a leading expert.
David Martell, CEO of home charging firm Andersen EV, has called on the Government to cut VAT rates on public electric car charging stations to help road users save.
Motorists currently pay 20 percent VAT on public electric charging bays compared to just five percent at home.
Dubbed the ‘pavement tax’, the rule means EV owners without access to off-street parking are forced to pay more to top-up their vehicles.
This is a major concern for those living in apartments in major cities such as London who will solely rely on public charging devices.
Speaking to GB News, David warned electric charging operators were “profiteering” off the back of drivers.
He said: “En-route rapid charging is very expensive, not because operators are necessarily profiteering but because of a number of differing factors, including a rate of 20 percent VAT compared with just five percent at home.
“Our figures show that it pays considerably to charge when you are at home or at work and, if possible, overnight at your convenience on a dedicated EV tariff.”
The House of Lords Environment and Climate Change Committee has recently called on the Government to look into the issue.
The latest ‘EV target: rapid recharge needed’ report stressed the extra fees were “unfair” as they demanded urgent action.
It read: “Ensure charging is reasonably priced, convenient, and reliable. While in many cases EV charging costs less than petrol refuelling, the Government must explore options for equalising the discrepancy between the VAT rates for domestic and public charging.
“The current situation is unfair for drivers without access to off-street parking.”
Experts at FairCharge have warned that those solely using on-street parking could pay a staggering £227 more compared to those topping up at home.
The Society of Motor Manufacturers and Traders (SMMT) has also repeatedly called for the 20 percent VAT rate to be abolished.
Last summer, SMMT chairman Mike Hawes warned the extra fees risked putting people off making the transition.
He said: “Most electric vehicle owners enjoy the convenience and cost saving of charging at home but those that do not have a driveway or designated parking space must pay four times as much in tax for the same amount of energy.
“This is unfair and risks delaying greater uptake, so cutting VAT on public EV charging will help make owning an EV fairer and attractive to even more people.”
