UK at risk of 'two-tier' car tax system with thousands of drivers paying more to use roads




Motoring experts have backed the move, with many expressing their own concerns about how the fee could impact road users.  

Eurig Druce, Group Managing Director at Stellantis UK, stressed a “two-tier” system was a real possibility. 

Eurig said: “The path to electric has been set. But there is a real risk of creating a two-tier motoring system where those with a driveway pay less to get around than those without. 

“That can’t be right and that’s why we support the FairCharge campaign.”

Previous data shows the average cost for charging at home is 32p per kWh of electricity. 

Meanwhile, those plugging in at public charging stations are likely to pay as much as 48p per kWh to top-up.

FairCharge estimates show that a reduction in VAT on public charging from 20% to 5 would save EV drivers around £85million in 2025. 

Total savings could increase to as much as £315m by the end of the decade as more switch to zero-emission models. 

Octopus Energy has previously claimed the rule “tax discriminates against drivers without driveways or garages”.

They also admitted the policy would ultimately “discourage EV sales” and risked “undermining the UK’s net zero goal”.

There has been a big push to change the rule in recent years but the Government has yet to take action. 

Back in 2022, a petition was signed by 23 Chargepoint operators demanding the Government to reduce the VAT rate on street plugs.

FairCharge previously demanded action back in March 2023 with 44 MPs backing the letter.



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Posted: 2025-02-13 01:20:49

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