Motorists without access to driveways are being targeted with higher car tax fees, according to a leading electric vehicle expert.
Dev Chana, MD of E.ON Drive Infrastructure, said higher VAT rates for those charging at public bays was effectively a “tax on people” without access to their own garage or drive.
Under current rules, motorists who top-up their electric cars at a public charging bay are forced to pay 20 percent VAT fees.
This compares to just a five percent VAT fee for those who always replenish their vehicle using an at-home charging cable.
Dev explained: “Taxing EV drivers four times as much for using public chargers is effectively a tax on people who don’t have a driveway.
“A fairer system which charges the same rate of VAT wherever and whenever you charge your electric car would be a real consumer win during this cost-of-living crisis and would also help speed up EV adoption by taking away an unnecessary and unfair cost.”
Energy provider E.ON was among a series of companies arguing Chancellor Jeremy Hunt to make urgent changes to the VAT rules.
FairCharge, Auto Trader, Jaguar Land Rover, Stellantis, Polestar, Autocar Magazine, Greenpeace, Transport & Environment and The Campaign for Better Transport were among firms writing an open letter calling for updates.
The motoring firms claim that electric car owners without their own driveway are facing an “unfair burden”.
The Society of Motor Manufacturers and Traders (SMMT) have been among those to demand an end to the unfairness of public charging.
SMMT chairman Mike Hawes explained: “The Budget is, therefore, a missed opportunity to deliver fairer tax for a fair transition.
“Reducing VAT on new EVs, revising vehicle taxation to promote rather than punish going electric, and an end to the VAT ‘pavement penalty’ on public charging would have energised the market.
“With both Government and industry having statutory requirements to deliver net zero, more still needs to be done to help consumers make the switch.”
