MPs call for end to 'unfair pavement tax' costing electric vehicle drivers £227 a year

MPs have called for an end to “unfair pavement tax” which sees electric vehicle owners paying £227 more to charge their car than drivers with driveways.

This is because higher VAT is levied on public charge points compared to home chargers.

Vicky Ford MP: “It is deeply unfair that those people with driveways pay only 5% VAT on the electricity to charge their cars but those in terraced homes often have to pay 20% to use a commercial charger, especially as those in terraced homes are often on lower incomes.

“Uptake of electric vehicles has never been higher, the second hand market is beginning to thrive and more and more people are looking to switch to electric cars.

“The Chancellor could use the Budget with a targeted intervention to stop the pavement tax, support shared chargers in residential areas, level out this inequality and help the industry to grow.”

The Conservative Environment Network (CEN) said it is important that all households have access to affordable charging with around 10 million electric vehicles expected to be on the road by 2030.

MPs hope Chancellor Jeremy Hunt will announce fresh measures at Wednesday’s budget.

Stephen Hammond MP: "Going into this budget, the government is right to prioritise cutting taxes and letting people keep more of their hard-earned money.

Full story