The British Vehicle Rental and Leasing Association (BVRLA) has urged the Chancellor to keep the Benefit-in-Kind (BiK) tax rates low to make the switch to electric vehicles (EVs) more affordable.
The association has launched a campaign highlighting the success of the tax benefits on EV uptake to date.
The BVRLA has also requested industry professionals to write to their local Member of Parliament (MP) to help them understand how the transition towards EVs benefit from the company car schemes.
BVRLA chief executive Gerry Keaney said: “The strides we have made as an industry to phase-out petrol and diesel cars before 2030 are clear, nearly 60% of electric vehicles on UK roads are company registered*. Order banks are currently healthy, with 80% of salary sacrifice orders being for battery electric vehicles as their low tax rates appeal to drivers.
“The uncertainty caused by the lack of foresight beyond 2024/25, or by seeing a sudden jump in rates, will cause the growth of EVs to stall. This needs to be addressed by the Chancellor in the budget this Autumn.”
As part of the campaign, the BVRLA has decided to organise an event for MPs in July this year, during which several industry experts will host a drive-by event outside the Houses of Parliament.
Through the event, the BVRLA will look to highlight the benefits of keeping BEV BiK rates low, providing more years of tax foresight, and preventing sudden rate hikes.
During the event, MPs will be asked to pledge their support to the #SeeTheBenefit campaign and encourage the Chancellor to act in the autumn budget, the association said.
Last week, the European Parliament supported a plan to ban the sale of petrol and diesel cars by 2035.