Calls for VAT relief on electric car ‘street charging’

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The disparity risks “undermining the Government’s net-zero transport strategy”, claim critics. Campaigners are now calling for VAT on public charging points to be slashed from 20 per cent to the domestic rate of five per cent.

The Government plans to ban the sale of new diesel and petrol cars from 2030.

But Bath MP Wera Hobhouse said: “Not everyone has access to home EV charging. In dense urban areas many do not have a driveway, so charging a vehicle at home is not an option.”

The RAC is calling for VAT on public charge-points to be cut to five per cent. Spokesman Simon Williams said: “A quality charging infrastructure will be key to helping people switch from conventional vehicles to electric ones.

“We must ensure those without driveways are not penalised with higher costs, otherwise there’s a risk the Government’s net-zero transport strategy will be undermined.”

But treasury minister Victoria Atkins said: “VAT relief for public EV charging would impose additional pressure on the public finances, to which VAT makes a significant contribution. VAT is the UK’s third largest tax, forecast to raise £157billion in 2022-23, helping to fund key spending priorities such as the NHS, education and defence.”

She added: “The Government is committed to supporting the transition to zero-emission vehicles to help the UK meet its net-zero obligations.”

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