Owners of certain vehicles to pay over £100 more car tax in 2024 as experts demand change
EXCLUSIVE: Some motorists will be hit with extra car tax charges in 2024 but motoring experts are demanding urgent updates.
Electric car owners will be forced to spend hundreds of pounds more on car tax fees in 2024 due to costly VAT charging fees.
Motorists are forced to pay 20 percent VAT when topping up at public charging bays compared to just five percent at home.
The rule means motorists without access to off-street charging plugs are forced to pay more with some paying hundreds extra per year.
Recent research put the average difference between public and private charging costs at around £92-£138 per month.
Motoring experts at carwow are now calling on an immediate cut to VAT fees after July’s General Election to support motorists in making the transition to electric vehicles.
Steve Walker, Head of Digital Content, Driving Electric said a cut to VAT fees would be a huge incentive for drivers.
Speaking to Express.co.uk, he explained: “Government help is more urgently needed in the field of EV infrastructure to boost roll-out and lower costs with a VAT cut on charging.
“All things being equal, the average motorist will prefer the driving and ownership experience of an EV over a petrol or diesel car, they just need the sums to add up and some confidence to take the big step.”
According to carwow’s most recent polling, reducing VAT on public charging bays was one of the key issues called for by motorists.
DON'T MISS
Car tax Clean Air Zones risk ‘transport poverty’ with driving ‘unaffordable' [LATEST]
Campaigners warn VED car tax could have major impact on new and used car owners [ANALYSIS]
Many drivers ‘disadvantaged’ with calls for ‘significant change’ to car tax rule [COMMENT]
A staggering 12 percent said they wanted to see action taken to change the funding model.
Carwow’s push comes after the Society of Motor Manufacturers and Traders (SMMT) and the AA both called for fees to be cut.
Meanwhile, a coalition involving Eon, the RAC, the Renewable Energy Association, andFairCharge have called for the 20 percent fee to be slashed.
But, the Government recently disagreed with a House of Lords report calling for cuts as they highlighted that VAT was a “broad-based” tax.
They stressed that expanding the VAT relief would also impose “additional pressure on public finances”.
Labour’s manifesto had also failed to include a mention of any VAT price cut suggesting the prices would not change if Sir Keir Starmer was in Downing Street.
Iain Reid, Head of Editorial at carwow commented: “We’d have liked to see more incentives for those looking to make the switch, for example, meeting our calls for funding or grants for EV purchases and home-based charging, and cutting VAT on public charge points.”
