The AA has appealed for the government to introduce a cut in VAT to 5% for drivers of electric vehicles who do not have access to off-street parking.
People with charging points at home are able to benefit from the lower VAT rate for domestic electricity, which stands at 5%. But drivers who need to use public charge points have to pay considerably more because VAT is charged at 20% at these locations.
The AA feels that more should be done for the estimated 40% of UK households owning an electric vehicle without off-street parking or a private charging point.
“More on-street residential charging options are essential as drivers won’t always want to travel to a rapid charging station,” said Edmund King, president of the AA.
“Cutting VAT on public charging to 5% in residential and urban areas so it mirrors tax rates on domestic energy would be a good start and make EV ownership more affordable for those without off-street parking,” said King.
The AA are not the only body to be making such a call. The Fair Charge campaign recently launched with the aim of reducing VAT on public charge points, to encourage people to make the switch to electric vehicles.
Headed by the motoring journalist Quentin Wilson, Fair Charge also campaigns for fairer tariffs from public charge point providers, as well as promoting low-cost funding options for EVs to make them cheaper to buy.
