- Officials are considering reducing VAT on public EV charging from 20% to 5% to match the home charging rate and eliminate the “pavement tax” disparity.
- The car industry has long campaigned for this change, which has gained urgency due to concerns over a planned pay-per-mile road pricing scheme.
- The pay-per-mile scheme, starting in 2028, will charge EV owners 3p per mile and plug-in hybrids 1.5p per mile; EVs will also pay a £195 annual VED.
- The government is also considering cutting VAT at service stations, supermarkets, and residential streets by 15 percentage points.
- The current system discourages those without off-street parking from switching to EVs, and tax cuts are seen as necessary to offset the impact of pay-per-mile charges.
Source: fiscal-requirements.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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