‘Scrap VAT for electric cars’ plea to boost sales
CAR chiefs yesterday backed the Daily Express campaign for tax incentives to encourage Britain to go green.
The Society of Motor Manufacturers and Traders has urged ministers to axe the 20 per cent VAT on sales of new electric vehicles.
Mike Hawes, chief executive of the association, accused the Government of playing “snakes and ladders” with the introduction of electric vehicles by undermining incentives that could boost sales. The Daily Express is campaigning for Zero For Zero – zero VAT on products with zero or near zero emissions.
New EVs carry the same VAT as more polluting petrol and diesel cars, which use the fossil fuels blamed for climate change.
The SMMT has also urged ministers to reverse their controversial
£500 cut in Plug-in Car Grant.
This is a discount on the price of brand new low-emission vehicles through a grant given to vehicle dealerships and manufacturers.
The SMMT said the VAT cut and full grant could increase sales of
the
£3,000
EVs by almost two-thirds by 2026. It warned that the installation of public charge-points for EVs needs to accelerate nearly 17-fold to meet demand by the end of the decade.
Currently, 42 charge-points a day are being installed. But the
SMMT said 700 a day up to 2030 are needed.
The group also said that one in 10 of the existing public charge points does not work.
In 2030, sales of new petrol and diesel cars will be banned in the UK, forcing motorists to opt for
EVs. Mr Hawes said: “It’s not so much a race to zero as a game of snakes and ladders.
“To deliver an electric revolution that is affordable, achievable and accessible to all by 2030, government and other stakeholders must put ordinary drivers at the heart of policy and planning.
“We need incentives that tempt consumers, infrastructure that is robust and charging points that provide reassurance, so that zero-emission mobility will be possible for everyone, regardless of income or location.”
A Department for Transport spokesman said: “We’re investing up to £2.8billion in driving the switch to electric vehicles, pledging grants for those who need them the most and working with the industry to support the installation of thousands of charge-points across the country.”