EV owners demand VAT cut on public charging
Electric vehicle owners demand a VAT cut on public charges as new car sales rise 25.8% year on year
Taxed: The Society of Motor Manufacturers and Traders has called for a reduction in VAT on public charges
New car sales in Britain rose 25.8 percent year on year in June on strong demand for electric vehicles (EVs) as owners demanded a tax break.
The Society of Motor Manufacturers and Traders (SMMT) said sales rose to 177,266, its 11th consecutive month of growth, but below pre-pandemic levels.
While EV registrations increased by 39.4 percent, the SMMT called for a reduction in VAT on public charges. Drivers charging at home pay 5 percent VAT to power an electric car, compared to 20 percent for those who rely on the public grid, the SMMT said.
“This is unfair and risks delaying greater adoption,” said boss Mike Hawes.
Nearly 1 million cars took to UK roads in the first six months of 2023, with an 18.4 per cent increase and a record 152,968 electric cars this year, the trade association said.