AA Calls For VAT To Be Scrapped On EV Cars

Published Date: 5th Aug 2021

The AA has suggested that scrapping VAT on EV cars in the upcoming Autumn budget would be the most influential decision the government could make in persuading motorists to switch to electric vehicles.

The AA canvased its members and two thirds said zero VAT on EV cars would make them much more likely to go electric than any other incentive currently available. Current incentives include the Government Plug-in Grant of up to £2,500 for qualifying vehicles and a grant of up to £350 available towards the cost of a home charger.

A recent study by The Competition and Markets Authority (CMA) has cast doubt on the 2030 deadline for sales of new petrol and diesel vehicles, citing several factors that are making some motorists hesitant about making the switch to an EV vehicle.

The study also cast doubt on Boris Johnson’s 2050 Net Zero target, the Prime Minister is extremely enthusiastic about green issues, but the target is seen as optimistic in some quarters.

One of the key factors right now for many people is budget restraints, while the price of EV vehicles is coming down, they are still significantly more expensive than their petrol/diesel counterparts.

If you are looking for a new EV car, we highlighted some of more affordable new EV cars  in our new electric car deals article here. MG, for example have released a spacious full electric estate car, the MG5, which has set a new benchmark in affordability for larger EV cars.

The AA survey demonstrated that scrapping VAT on the purchase price of EV cars would be the top motivator. Other potential incentives that are also popular ideas are; the availability of more fast chargers, a scrappage scheme, free parking in council own car parks and no VAT on leasing as well as outright purchase of electric vehicles.