A £190 hike in car tax and Vehicle Excise Duty for drivers could be SCRAPPED if the Labour Party bows to pressure. Experts at NewAutomotive have called for the government to abolish the planned increase in Vehicle Excise Duty (VED) for all-electric cars from next spring.
Ben Nelmes, CEO of NewAutoMotive stressed the new charges would introduce an “electric car tax penalty” for thousands of owners across the UK. He said: “It’s wrong to think that the transition to cleaner transport will take the public finances over a ‘cliff edge’.
“Electric cars aren’t a sin to be taxed but a boon for the economy. Our recommendations suggest a way forward for the Chancellor that is simple and would avoid the kind of bad outcomes seen in other countries that introduce pay-per-mile charging on electric cars.
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"Our recommendations would avoid the creation of an electric car tax penalty that is currently due to come into force in April 2025, and which may prevent more people from accessing the benefits of getting a used electric car.
“EVs can be good for motorists and the taxman - a win-win for people and the planet.” The study from the independent transport research organisation warns that pay-per-mile road pricing could stall strong EV take-up in the UK, based on sales figures from Iceland and New Zealand.
Researchers at the independent transport research organisation say that road tax and fuel duty need “light reform” but radical tax changes to support the EV shift are unnecessary. Under the current reforms planned for road tax policy, drivers of cleaner cars will end up paying up to 10 times more than owners of some older, more polluting petrol and diesel vehicles.
The suggested changes would tackle this by raising VED for certain cars sold pre-2017 while ensuring that drivers of many cleaner cars – not just electric cars or newer cars – would pay less.
2024-10-01T13:09:13Z dg43tfdfdgfd