The trouble with taxes
The article concerning the two Kias driven from
Brighton to Glasgow (‘The proclaimer’, 9 March) didn’t make an overwhelming case for electric from a running cost perspective, at £82 for the EV6 against £99 for the petrol Proceed.
The EV6 driver pays 20% VAT on fuel, of course, so £68 net value, meaning a total tax burden for the trip of £14. The
Proceed driver also pays 20% VAT but in addition pays fuel duty (57.95p per litre), so in this case the taxation is almost £55.
Using off-motorway chargers in everyday driving would lower the cost of electricity further so that the loss of revenue to the Exchequer is even greater.
National expenditure can’t cope with this heavy discounting, and the answer seems to be indicated as future road charging. However, this is to a degree unfair, because it takes no account of how carefully a car is driven. It seems the government can take 20% VAT when it identifies that electricity is being used for a vehicle, so any additional taxation to bring EVS in line with ICE cars should be possible. (Home charging on a threepin plug might evade this, so some means of blocking might be in order.)
We know not where fuel prices will end up after the current turmoil ceases, but with equable taxation, it isn’t likely to favour the EV.
Noting the fast chargers in use for the EV6, there seem to be six at Leeds Skelton Lake services, but when half the cars on the road are EVS, the demand on such locations will be more than 100 times greater. Mike Young
Retford, Nottinghamshire