Electric vehicle drivers will spend an extra £85m on UK tax when using public car chargers this year because of a disparity in VAT rates that the industry has said is holding back the transition away from fossil fuels.
EV drivers spend extra £85m on VAT when using public chargers Industry says ‘pavement tax’ due to disparity in VAT rates is holding back transition away from fossil fuels.
Matt Galvin, the managing director of the electric car brand Polestar in the UK, said: “This is an urgent requirement to support EV adoption, particularly to encourage the private buyer, and prevent unfair costs to those without driveways.”.
The extra cost to electric car drivers in 2025, at £85m, is far below the £2bn the government committed to a freeze on fuel duty for polluting petrol and diesel cars in the October budget.
“This small change would bring fairness to those without home chargers, encourage more drivers to switch and support price parity between home and public charging,” he added.
