BEAMA has launched its #DontTaxTheTransition campaign, calling for a delay to the introduction of electric vehicle excise duty (eVED) until 2030, in line with the ZEV Mandate and the planned end of ICE vehicle sales.
Last year Chancellor of the Exchequer Rachel Reeves confirmed that the UK Government will introduce ‘pay-per-mile’ rules for electric vehicles (EV) as a result of falling revenue from fuel duty.
Reeves said that the tax charge will raise around £1.2bn as a result of a the new mileage-based charge on electric and plug-in hybrid cars from April 2028, which will be set at around half the fuel duty rate paid by drivers of petrol cars. EVs will also still have to pay Vehicle Excise Duty. Electric vans will be exempt from the rules.
The Government has consulted on bringing in electric vehicle excise duty on EV drivers from 2028 with the consultation closing today (18 March).
BEAMA, the UK trade association for manufacturers in the electrotechnical sector, has put forward a series of key asks:
- Delay eVED implementation until 2030, aligning it with the ZEV Mandate end of sale of ICE vehicles targets.
- Provide more time to work out technical implementation details.
- Use increased fuel duty revenue to fund EV charging infrastructure investment.
- Ensure future eVED revenue is used to support the EV transition and not just pothole repairs.
- Funding asks include: Dedicated support for HGV Charging Infrastructure to support the Government’s proposed HGV ZEV Mandate, including for grid upgrades. Improved funding for flexibility rewards to support the UK’s energy security and the Government’s SSES programme.
Speaking on LinkedIn, Matthew Adams (pictured), Head of Electrical Transport Systems at BEAMA, said:
“Our research shows that where eVED style policies have been deployed the following years EV sales have been very poor.
“We must ensure Government at the end of the year will start a review of the ZEV mandate and that eVED won’t be used as an excuse to weaken it further, when the ZEV mandate is being proven to work.
“Of course there are a number of technical challenges around eVED implementation that must also be addressed. Our response published to the consultation published today highlights some of those.”
BEAMA’s full response to the consultation on the introduction of Electric Vehicle Excise Duty (eVED) can be viewed here: https://www.beama.org.uk/what-s-new/news/beama-response-consultation-on-the-introduction-of-electric-vehicle-excise-duty-eved.html
Image courtesy of BEAMA.
