Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Chancellor Urged to Boost Electric Car Sales with VAT Reduction

by March 4, 2024
March 4, 2024
Chancellor Urged to Boost Electric Car Sales with VAT Reduction

Prominent car manufacturers, energy firms, and environmental advocates are calling on the chancellor to rectify a tax discrepancy that is adversely affecting the sales of electric vehicles.

A letter addressed to Jeremy Hunt claims that an estimated two-fifths of electric vehicle owners are facing unfair treatment due to the Treasury’s taxation policies on public recharging points, subjecting them to the full 20 per cent VAT rate. In contrast, owners who charge their vehicles at home benefit from a significantly lower VAT rate of 5 per cent.

“The substantial price gap between home and public charging is now a significant deterrent to electric vehicle adoption,” the letter highlights.

Signatories of the letter include major industry players such as Jaguar Land Rover, Stellantis (owner of Vauxhall), energy giant E.ON, Greenpeace, and Chris Skidmore, a former Conservative MP who resigned over government energy policies.

The letter was coordinated by the FairCharge lobby group, founded by motoring journalist Quentin Willson.

Willson emphasized, “The cost to the Treasury would be minimal compared to the substantial support provided for fuel duty. Yet, the benefits for electric vehicle drivers without private parking, and for urban air quality, would be considerable, eliminating this unnecessary hurdle to electric vehicle adoption.”

Dev Chana, managing director of E.ON Drive Infrastructure, criticized the current system as effectively penalizing individuals without driveways. He argued that reforming the system would represent a significant consumer victory during the ongoing cost-of-living crisis, removing an unfair financial burden.

This demand comes amidst increased lobbying efforts by the motor industry for various reforms supporting zero-emission vehicles, urging the Treasury to match its claims of support with tangible action.

Jonathan Goodman, UK head of electric car manufacturer Polestar, stressed, “The UK is lagging behind other European countries in incentivising the transition to electric vehicles.”

In its budget submission, the Society of Motor Manufacturers and Traders supported a VAT reduction on public charging, alongside halving the VAT rate for zero-emission vehicle purchases. The group urged the chancellor to reconsider upcoming changes to vehicle excise duty, warning that they would treat electric cars as “luxury items rather than essentials.”

Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders, criticized the Treasury for overseeing a “counterproductive fiscal system” that discourages the adoption of cleaner transportation. The group also cautioned that the government’s decision to postpone the ban on new petrol and diesel cars had adversely impacted electric vehicle sales.

The government contends that it has already allocated over £2 billion to accelerate the adoption of zero-emission vehicles. Last year’s autumn statement pledged an additional £2 billion between 2025 and 2030 to support the manufacturing and development of zero-emission vehicles, including batteries and supply chains.

Read more:
Chancellor Urged to Boost Electric Car Sales with VAT Reduction

0
FacebookTwitterGoogle +Pinterest
previous post
Mike Ashley’s Frasers Group Acquires Wiggle Bicycle Retailer
next post
Lord Sugar Revives Amstrad Brand for Grandson’s Digital Marketing Venture

You may also like

‘Heartbroken’ young farmers join London protests over Labour’s...

February 11, 2025

UK workers’ pay up nearly six per cent...

April 18, 2023

NEETs near one million as jobless young women...

August 21, 2025

Invest in Public Liability Insurance to Protect Your...

March 7, 2023

SME confidence makes a cautious comeback

May 11, 2023

Jaguar Land Rover owner ‘seeks £500m UK subsidy...

March 2, 2023

Vintage teddy bear sales soar amid Paddington Bear...

November 20, 2024

Buying Guide: Lab Grown Diamonds for Engagement Ring

May 3, 2024

Covid infections study increases calls for masks

August 19, 2022

Jobseekers rise at fastest rate in five years...

April 11, 2025

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • XRP price prediction hits new highs, GMO Miner helps you earn $6,800 a day

      August 28, 2025
    • West End retailers lose £310m from VAT-free shopping ban in first half of year

      August 28, 2025
    • Dollar slips as Trump moves to sack Fed governor Lisa Cook in unprecedented clash over central bank independence

      August 28, 2025
    • CDC Director Susan Monarez refuses to be fired as other officials call it quits

      August 28, 2025
    • Bill Gates met with Trump to talk ‘importance of US global health programs and health research’: spox

      August 28, 2025
    • Trump asks SCOTUS to uphold freeze on billions in USAID payments

      August 27, 2025

    Categories

    • Business (8,900)
    • Investing (2,246)
    • Politics (16,503)
    • Stocks (3,228)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved