Electric car brand Polestar demands major update to £425 VED car tax rule




Recent analysis from motoring experts at Alphabet suggests that as many as 80% of EVs currently on the market would exceed this cost and face fees.

To solve the issue, Polestar wants to see the ECS charge set at £52,500 which would “reflect inflation and ensure fairer taxation on EVs”.

Matt Galvin, managing director of Polestar UK, commented: "Since it was announced, the 2030 ban on new petrol and diesel car sales has been a crucial step in encouraging the UK to transition to an emissions-free tailpipe future improving air quality and reducing health issues.

“But the potential changes to targets like these have created uncertainty for both consumers and manufacturers alike. The Government must stick to its commitments and provide clear policies that encourage EV adoption rather than confusing things further."

Polestar is also calling for a temporary reduction in VAT on new EVs to 10% for three years which would lower the upfront cost of securing a model. 

It also wants to see a cut on VAT rates at public electric chargers from 20% to 5% to bring the fees in line with home charging rates. 

It stressed the current rules ensure there is a “financial disadvantage" to road users who do not have access to private charging bays.

Mr Galvin added: "The UK automotive industry handed out an unsustainable £4.5 billion in discounts in 2024 to meet EV mandates. This is not a long-term solution and throttles investment in future technologies. 

“The Government must implement structural incentives that encourage consumers to choose electric vehicles willingly, not just through short-term discounts."



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Posted: 2025-02-18 14:32:01

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