Ahead of the Chancellor’s fiscal statement this morning, FairCharge sent representations to the Chancellor outlining why the Government should equalise the VAT rate for public EV charging (20%) in line with off-street charging (5%).
Drawing on our work with Zap-Map, FairCharge found the average EV driver without private parking pays £148 more per year in tax alone than drivers with driveways. This ‘Pavement Tax’ could be even higher (£227) as those with driveways can access low-cost overnight tariffs, such as those offered by Octopus Energy.
Not only does this outdated VAT policy punishes the 38% of UK households without private parking, but it further acts as a barrier to EV driving for low-income drivers.
If this VAT discrepancy is not addressed, it may stall the rollout of EV infrastructure, damaging the progress already made to drive the UK’s EV rollout.
Addressing this unfair VAT discrepancy would cost the Treasury £37m. This low-cost intervention is relatively minor compared to the £5bn reduction in fuel duty provided by the Government earlier this year.
We call on the Treasury to Axe the Pavement Tax to help all drivers switch to EVs and move towards cleaner air and energy security in the UK.
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