- The UK government is considering reducing VAT on public EV charging from 20% to 5% to match home charging rates and address tax disparities.
- This move aims to support EV adoption amid concerns over a pay-per-mile road pricing scheme starting in 2028, which could increase costs for EV owners.
- The pay-per-mile scheme will charge EVs 3p per mile and plug-in hybrids 1.5p per mile, with EVs also paying a £195 annual VED rate.
- The current tax system discourages those without home chargers from switching to EVs, as they pay significantly more tax.
- The government is reviewing public charging costs and considering further VAT cuts at service stations, supermarkets, and residential streets.
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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