‘Out-of-date’ – Top Gear legend urges government to scrap ‘unfair’ car tax rule
Some relief for drivers has already been pencilled into the Spring Statement
A TOP Gear legend has urged the Government to scrap an “unfair” car tax rule in the upcoming Budget, dubbing it an “unnecessary barrier”.
Quentin Wilson warned that the so-called “pavement tax” could be a key obstacle to the wider adoption of electric cars.
The TV star who founded Fair Charge, an EV campaign group, pointed to VAT charges enforced on public charging as a major cost for drivers.
Home charging is widely regarded as one of the cheapest refuelling methods for any motor, but is only accessible to relatively few people.
Renters or Brits living in blocks of flats are likely to be unable to install a charger on their building, while some homeowners may not be able to secure the necessary planning permissions.
This forces EV drivers living in such circumstances to rely entirely on the public network.
Not only does this expose them to higher electricity prices compared to home charging (especially as they often can’t charge overnight), but also a hefty lump of tax.
Those using public chargers will see a whopping 20% VAT rate added to their bill, compared to just 5% for home chargers.
This is likely to disproportionately affect poorer drivers and those living in major cities, who are less likely to own property or have access to off-street parking.
Quentin, who presented the original Top Gear from 1991 to 2001, said: “If the Government is serious about wider EV adoption, they must revisit this out-of-date VAT legislation – written in the early 1990s before the arrival of electric cars – and make it fit for purpose.
“The cost to The Treasury would be very small compared to the hundreds of billions spent supporting fuel duty, but the benefit to EV drivers without private parking and to urban air quality would be significant and remove this unnecessary barrier to EV adoption.”
The calls have prompted motoring and environmental groups, including Auto Trader, The Campaign for Better Transport and Greenpeace to sign an open letter asking the Chancellor to cut the VAT rate on charging in his Spring Budget.
The proposed changes have also won the backing of the Society of Motor Manufacturers and Traders (SMMT) – the trade body representing UK carmakers.
Jeremy Hunt is set to take to the dispatch box to set out the Government’s financial plans tomorrow.
The statement will include some relief for drivers as a continuation of the fuel duty freeze will see them save £16 a tank thanks to The Sun’s Keep It Down campaign.
