Electric vehicle leaders have called on the UK Government to cut VAT on public charging as petrol and diesel drivers are more protected from global price shocks than electric counterparts.
The 5p fuel duty cut was first introduced during the global energy crisis after Russia’s invasion of Ukraine to shield drivers from soaring petrol prices. But industry figures say keeping the duty cut, while maintaining 20% VAT on public EV charging, effectively means drivers who have already switched to electric are being penalized.
Home charging is taxed at just 5% VAT, but public charging carries 20% VAT with EV leaders stating “that gap is unfair and increasingly hard to justify”.
The news follows community benefit society Charge My Street winning its appeal on whether public electric vehicle (EV) charging should qualify for the reduced 5% VAT rate. The Tribunal found that Charge My Street’s model of providing accessible, community-based EV charging met the criteria for the
reduced VAT rate previously reserved for domestic electricity supplies.
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