The Chancellor’s lack of action on reducing VAT on public EV charging is costing EV drivers without a driveway around £1,515 a year, according to campaign group FairCharge.
The sum was calculated by the 20% VAT cost for public charging compared to 5% for domestic charging – and the lack of movement on the issue in the Spring Budget last week.
Analysis by FairCharge has shown that the average cost of charging on the public network is now as much as £1,838 a year compared to just £323 charging at home on lower night-time rates (figures from Octopus Go).
More than 40 parliamentarians have got behind the policy, including the MP leading the independent Net Zero Review, Chris Skidmore, who identified the ‘pavement tax’ as a barrier to growth.
Quentin Willson Founder of FairCharge, said: “The Treasury is sabotaging the EV revolution by using archaic laws that it refuses to change. The Spring Statement supported fossil fuels with the continuation of the 5p duty cut but offered nothing for EVs.
“This could have been a low-cost intervention to help grow EV adoption as well as stimulating capital investment in the UK’s public charging infrastructure but, sadly, was brushed aside. The difference between charging at home and on the public network is now as much as 50p per kWh – which, across a year, adds up to such a shocking difference in charging costs.”
RAC spokesman, Simon Williams, said: “The ‘Pavement Tax’ prevents over a third of all households going electric, simply because they can’t charge at home. No one should be penalised just because they don’t have private parking. And with recent rises in charging costs, it’s absolutely right that the government should end this unfairness now”.
