Autumn statement confirms road tax charge for EVs. Still thinking of buying an electric car? ⚡️
With the popularity of battery powered cars soaring, and the Treasury’s need to raise funds growing, it was only a matter of time before electric vehicles were no longer exempt from Vehicle Excise Duty. And today is the day:, the Chancellor Jeremy Hunt has confirmed that electric vehicles will pay road tax from 2025. Fun while it lasted, eh?
Exact details are scarce for the moment, the news only announced in a tweet, though it did add the move has been taken ‘so all motorists begin to pay a fair share’. For the first year, electric cars will pay £10, as the current lowest emitters do, but from year two the rate will be the same as standard VED - £165. Surely EV owners won’t be tremendously pleased to pay as much as petrol and diesel drivers.
What this move will do for the popularity of EVs in the UK obviously can’t be predicted yet. Given a new electric car of any stripe is going to be £30k, and even the very cheapest Leaf is £6,000, it doesn’t feel like £150 more a year will sway the decision back to a combustion engine. But, quite frankly, who knows what’s going to happen. Suffice it to say, though, that the days of running an EV at next to no cost are coming to an end.
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