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Coalition Calls for VAT Cut on Public EV Charging to Boost Adoption




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A coalition of businesses, including FairCharge, Auto Trader, and E.ON, has called on the government to reduce VAT on public electric vehicle (EV) charging to encourage wider EV adoption and affordability. In an open letter led by FairCharge Founder Quentin Willson, representatives from the charging, automotive, and power sectors urge the Chancellor to consider this reduction in the Spring Budget. They argue that the current VAT system, established in the early 1990s before the emergence of electric cars, unfairly penalizes those without access to home charging facilities and acts as a barrier to EV adoption. Highlighting the small financial impact on the Treasury compared to the benefits for urban air quality and EV drivers without private parking, the group seeks to align public charging VAT rates with those for home charging. E.ON Drive Infrastructure's MD, Dev Chana, emphasized that the current system disproportionately taxes users of public chargers, advocating for equal VAT rates to support consumers amid the cost of living crisis and accelerate EV adoption by removing this cost barrier.

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