Scrapping VAT on the sale of new electric cars would be the most effective policy in boosting EV uptake, a new survey has revealed.
Two in three motorists say cutting 20 percent VAT from the purchase price would be the most helpful move – with particular support amongst low income households.
Indeed, support for scrapping VAT on new EVs has actually grown since the AA last surveyed motorists back in 2019.
Other policies supported by motorists to help move away from petrol and diesel cars include rolling out more rapid charging connectors, free EV parking and a scrappage scheme similar to the one introduced in 2008.
‘Go all in for EVs’
“If the Prime Minister is to meet the nation’s decarbonisation and Net Zero targets, then the government needs to go all-in for electric vehicles,” said AA president Edmund King.
“Many drivers still feel priced out of the electric car market, so more has to be done to encourage their uptake. Scrapping VAT, as happened in Norway, is the best way to accelerate their growth and give consumers confidence.
“As the UK looks to ‘level up’, we urge the Prime Minister and the Chancellor to act positively.”
Separate analysis from trade body the Society of Motor Manufacturers and Traders indicates that scrapping VAT on new EV sales could see them overtake petrol and diesel cars as soon as 2025.
This would be three years earlier than if the government continues with its less generous £2,500 Plug-in Car Grant for cars priced under £35,000.
ALSO READ
‘Major’ price cut for VW ID.3 means more EVs eligible for Plug-in Car Grant
