A campaign to cut VAT from 20% to 5% at public charging stations is gathering momentum thanks to motoring expert Quentin Willson.
Every public charger in the United Kingdom has a 20% VAT rate on energy, while the domestic VAT rate on energy stands at 5%.
Even with charging network operators raking in profits – BP Pulse says it’s almost as profitable as flogging petrol – 20% VAT is a big reason behind high public charging costs.
TV motoring expert Quentin Willson argues that cutting VAT at public charging stations to the same 5% rate as domestic energy is necessary for EV take-up.
“It isn’t just unfair, it’s a policy mistake that will hinder EV take-up and impact on exactly those who we want to enjoy the benefits of an EV,” said Quentin.
The argument is valid: a 15% discount could translate to 15% less at the charger, providing the savings are passed on by charging network operators.
Now, pressure group FairCharge, led by Quentin, is campaigning to reduce the VAT to 5% to reduce running costs for drivers without a domestic charger.
FairCharge is a new national campaign to make sure that we harness the tremendous environmental, economic and social benefits of the EV revolution.
FairCharge
The campaign is also backed by the RAC, which sees rising energy costs as a serious barrier to EV adoption, especially among those that don’t have off-street parking and are forced to use expensive public chargers to drive.
Who doesn’t want cheaper charging? You can find out more about the campaign and become a supporter at the FairCharge website.
