A parliamentary motion calling on the Government to scrap the unfair VAT discrepancy between private and public EV charging has been tabled by FairCharge supporter and Liberal Democrat Transport Spokesperson, Sarah Olney MP.
It's not right that EV motorists without driveways and garages are paying more tax simply because of an arbitrary piece of VAT legislation introduced well before the EV revolution got under way. The Government’s stated ambition is mass adoption of EVs but this policy is a massive disincentive for wider adoption.
If the transition to electric vehicles – and to net zero more widely – is to be successful, then this must be fair and accessible to all. This exactly what our FairCharge campaign is trying to ensure.
We are calling on the Treasury to equalise the VAT rate at 5% for all EV charging. It's great to see that MPs are now taking notice and calling on the Government to make this change.
The motion, which has been signed by 22 MPs so far, reads as follows:
That this House notes there is a discrepancy between VAT on residential off-street electric vehicle charging which is charged at 5 per cent and VAT on public charging which is charged at 20 per cent; urges the Government to scrap this discrepancy and reduce VAT on public charging to 5 per cent; notes that 60 per cent of households in major towns and cities do not have access to off-street parking and therefore pay a higher rate of VAT on EV charging; recognises the important role electric vehicles and their associated infrastructure will play in decarbonising the UK’s transport network; and urges the Government to do more to increase provision of EV Chargers.