Government urged to scrap VAT on electric cars

Scrapping VAT on the sale of electric vehicles would be an ‘influential’ step in persuading drivers to move away from traditional combustion engines, a new survey suggests.

The survey, which sampled the views of 17,500 AA members, found 61% would be more likely to purchase an electric vehicle, if the cost of VAT was removed.

More than a quarter (28%) of respondents from low income households said removing VAT from the purchase price would be ‘very influential’ in helping them switch to fully electric cars.

In terms of age, younger drivers were more likely (74%) to say that scrapping VAT would encourage them to switch to an electric vehicle than older drivers (59%).

The AA is now calling on the Government to listen to the results of its survey and show it is serious about accelerating the uptake of ultra-low emission vehicles.

Edmund King, AA president, said: “The UK car parc needs a shock to the system. Eight out of 10 drivers say improving air quality is important to them, but they are confused by current policies and as such many have stuck with older, more polluting cars.

“A combination of the climate change emergency and local councils setting up vastly different Clean Air Zones, means that many drivers feel under pressure to change but can’t no matter how much they try.

“With EVs making up just 0.2% of the nation’s cars, there is a long way to go to meet the official target of at least half of new car sales to be ultra-low emission by 2030. Our proposal would help to achieve that goal more quickly.

“Drivers want to amplify their wishes to go electric. We hope by plugging this idea the country will unite and deliver positive change.”

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