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.
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.