Cut VAT on charging for EV drivers without off-street parking, says AA
The AA has called for a tax break for EV drivers without off-street parking to ensure a more democratic approach to charging.
It says that the 40% of households without access to off-street parking or in rental accommodation need more local chargers at beneficial rates.
To help ensure this, the AA is calling on the Treasury to cut VAT on electricity to 5% for local charger posts to match the rates that homeowners with their own charging posts benefit from.
Edmund King, AA president, said the association was concerned that a two-tier system could emerge where the 40% of households without dedicated off-street parking pay considerably more to charge than those with a driveway, garage or parking space.
“Cutting VAT on public charging to 5% in residential and urban areas so it mirrors tax rates on domestic energy would be a good start and make EV ownership more affordable for those without off-street parking.”
He also said that more on-street residential charging options ere essential as drivers won’t always want to travel to a rapid charging station.
“In order to convince more drivers to make the switch to electric cars a more accessible charging network is crucial,” stated King. “We need more well-signed charge points installed in well-lit areas that are totally accessible for all including disabled or elderly drivers.”