An Ex-Top Gear presenter has called on Chancellor Jeremy Hunt to scrap an “out-of-date” VAT rule which has a major impact on electric car owners.
Quentin Wilson, Founder of EV campaign group FairCharge, warned scrapping the unpopular ‘pavement tax’ would remove an “unnecessary barrier” to the wider adoption of electric models.
EV owners who top-up their model at public charging bays pay a staggering 20 percent in VAT rates.
Meanwhile, those using plugs at home pay just five percent VAT and would therefore make major savings.
The policy has been dubbed the ‘pavement tax’ because those without access to off-street parking at home are caught out with higher costs.
This could become an issue in major cities such as London where many live in apartments or flats without access to their own driveway.
Mr Wilson said: “If the Government is serious about wider EV adoption, they must revisit this out-of-date VAT legislation – written in the early 1990s before the arrival of electric cars – and make it fit for purpose.
“The cost to The Treasury would be very small compared to the hundreds of billions spent supporting fuel duty, but the benefit to EV drivers without private parking and to urban air quality would be significant and remove this unnecessary barrier to EV adoption.”
A staggering 32 percent of consumers said the heavy costs of public charging were still a “key barrier” to making the switch.
It has prompted motoring experts to deliver an open letter to Jeremy Hunt calling for action in the Spring Budget this week.
The letter has generated the support of Auto Trader, Jaguar Land Rover, Stellantis, Polestar, Autocar Magazine, Greenpeace, Transport & Environment and The Campaign for Better Transport among others.
The group warns that the extra VAT fees are an “unfair burden” that risks undermining the Government’s cleaner air targets.
This could become an issue in major cities such as London where many live in apartments or flats without access to their own driveway.
The latest demands come just weeks after the Society of Motor Manufacturers and Traders (SMMT) threw their weight behind VAT changes.
The House of Lords Environment and Climate Committee also suggested the Government should “explore options for equalising the discrepancy” between public and private fees.
Ian Plummer, Commercial Director at Auto Trader said the Chancellor had to end the “injustice” immediately.
He explained: “It is simply unfair that EV owners without driveways should have to pay more for the privilege of improving air quality.
“It’s time for the Treasury to address this injustice and give electric vehicles the best chance of widespread adoption, rather than remaining the preserve of the wealthy.”
