Drivers want VAT scrapped to incentivise EV sales, research finds

Drivers believe that scrapping VAT would be the best way to boost sales of electric vehicles, new data has revealed.

Research carried out by the AA found that 66 per cent of drivers believe that ending the tax on EVs would be the most effective means of improving uptake.

In a survey of more than 14,000 people, 64 per cent said that improving the charging network to include more than 25,000 rapid charging connectors would also help drive sales.

Almost six in ten (57 per cent) of those asked said they favoured a government-subsidised scrappage scheme, while just under half (49 per cent) believed free electric car parking in council owned car parks would incentivise buying an EV.

A similar number said they would like to see the government remove VAT on leasing costs for electric vehicles, with 47 per cent of respondents in favour of the move.

The AA is now calling on the government to put the findings into action and slash VAT on EVs in its autumn statement.

A similar move has already been taken in Norway.

Edmund King, president of the AA, said: ‘If the Prime Minister is to meet the nation’s decarbonisation and net zero carbon emissions targets, then the government needs to go all-in for electric vehicles.

‘Many drivers still feel priced out of the electric car market, so more has to be done to encourage their uptake.

‘Scrapping VAT, as happened in Norway, is the best way to accelerate their growth and give consumers confidence.

‘As the UK’s number one motoring organisation for electric cars, we know urgent action is needed to help decarbonise the UK car parc.

‘Removing VAT on EVs at the budget will not only give the motor trade a jump start, but should help power up the electric car revolution.

‘Giving the EV market a jump start will not just boost UK car manufacturing, but will also help reduce CO2 across the country and create new high skilled, high paid jobs in battery innovation.

‘As the UK looks to “level up”, we urge the prime minister and the chancellor to act positively.’

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