Electric vehicle leasing company, Tusker, has partnered with FairCharge, the national EV campaign, to join calls for reduced VAT on public EV charging.
EV drivers pay 20% VAT on any electricity supplied by an on-street, public charger, while those with home charging pay just 5%.
FairCharge is campaigning for the government to lower the cost of public charging which unfairly disadvantages the 38% of households without driveways or private parking.
Tusker, which has been fully carbon neutral for over a decade, with a fleet of more than 16,000 electric vehicles, advocates sustainable and affordable EV motoring.
Paul Gilshan, Tusker’s chief executive said: “The aim is to help the UK drive a better car – by providing everyone with an affordable way to drive electric.
“We are aware of the charging inequality that exists between those with and without access to home-charging as while EVs are now often more affordable to drive than petrol or diesel equivalents, it is unfair that some drivers are penalised by higher VAT rates simply because they rely on the public charging network.”
Charge point operators have indicated to FairCharge that any VAT reduction will be passed directly to consumers. Tusker backs the campaign, highlighting that changes to the tax on public charging could make a huge difference in encouraging drivers to switch ahead of the 2030 deadline on new car and van sales.
FairCharge believes the higher rate of VAT is becoming a growing disincentive for drivers to make the switch and may even be incorrectly applied by HMRC.
Quentin Willson, the founder of FairCharge, said: “Unfair VAT rates on public charging are slowing down EV adoption and creating social barriers between those with driveways and those without.
“If this government is serious about UK electrification it simply must end this archaic and divisive tax anomaly. Lowering the UK’s transport and energy costs is critical, and I look forward to working with Tusker to help bring them down together.”