Calls for Government to scrap VAT on electric cars

Fresh calls have been made for the Government to scrap VAT on electric cars in order to increase uptake rates.

It comes from motoring services firm the AA, which polled its members and found 61 per cent would see such a move be ‘influential’ in moving away from traditional combustion engines.

Younger drivers in particular — aged 18 to 24 — say scrapping VAT on EVs would encourage them to make the switch, with 74 per cent agreeing with the calls. Of over 65s, 59 per cent said it would be a strong factor.

Edmund King, president of the AA, said: “The UK car parc needs a shock to the system. Eight out of 10 drivers say improving air quality is important to them, but they are confused by current policies and as such many have stuck with older, more polluting cars.

“A combination of the climate change emergency and local councils setting up vastly different Clean Air Zones, means that many drivers feel under pressure to change but can’t no matter how much they try.”

Of the 17,500 respondents, 51 per cent said they would like to see a scrappage scheme introduced to promote EV uptake, while 40 per cent also believe VAT should be removed from leasing prices.

King added: “Drivers want to amplify their wishes to go electric. We hope by plugging this idea the country will unite and deliver positive change.”

Currently, electric vehicles with a list price under £40,000 are exempt from Vehicle Excise Duty. Those over that figure command a £320 VED rate for five years from the second time the vehicle is taxed.