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Guardian
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Car tax: green motoring just got more expensive as EVs lose exemption
- New tax rules introduced have led to increased costs for drivers, including EV owners and buyers of high-end cars.
- Under the new vehicle excise duty (VED) system, EVs have lost their tax exemption, and a costly car supplement is applicable for high-value vehicles.
- This change may deter people from purchasing EVs, as they now face similar tax obligations as petrol and diesel car owners.
- VED, also known as car tax, is based on factors like vehicle emissions and value, with rates varying based on registration date.
- For cars registered post-2017, a showroom tax is applied initially, followed by a flat rate, with an additional levy for vehicles over £40,000.
- Previously exempt from VED, EVs now incur a £10 first-year tax and subsequent standard rates, impacting their attractiveness.
- The changes aim to promote EV sales, but critics suggest they hinder the switch to electric due to increased costs.
- Some experts believe the revised tax regime may push buyers towards more affordable non-EV options, affecting EV demand.
- Rising VED costs for petrol and diesel vehicles may make cleaner, more efficient cars more appealing to consumers.
- Potential consequences include longer retention of current vehicles due to financial constraints imposed by the tax changes.
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