EV owners demand VAT cut on public charging

Britain’s new car sales jumped 25.8 per cent year-on-year in June thanks to solid demand for electric vehicles (EVs) – as owners demanded a tax break.

The Society of Motor Manufacturers and Traders (SMMT) said sales rose to 177,266, the 11th consecutive month of growth, but below pre-pandemic levels.

As EV registrations grew 39.4 per cent the SMMT called for a cut in VAT on public charging. Drivers who charge at home pay 5 per cent VAT to power an EV, compared with 20 per cent for those who are reliant on the public network, said the SMMT.

‘This is unfair and risks delaying greater uptake,’ boss Mike Hawes said. 

Close to 1m cars joined UK roads in the first six months of 2023 with registrations up 18.4 per cent, and EVs at a record 152,968 so far this year, the industry body said.