"Electric Car Owners May Soon See Relief from 'Pavement Tax': A Potential VAT Cut on Public Charging Stations. In a move that could bring some much-needed savings to electric vehicle (EV) owners, the Department for Transport is reportedly supporting a reduction in the VAT charged on electricity used at public charging stations. Currently, a 20% VAT rate applies to these charges, leading critics to label it a 'pavement tax'. If the proposal is successful, the rate could be slashed to just 5%, with charger companies indicating that they would pass the savings on to consumers. The decision now rests with the Treasury, but industry insiders suggest that a VAT cut could be a significant boost for the UK's transition to electric vehicles."
Department for Transport is understood to back reducing levy, which critics have called a ‘pavement tax’Business live – latest updatesGovernment officials considered cutting the VAT charged on electricity used at public EV chargers from 20% to 5% at the last budget, but the Treasury under chancellor Rachel Reeves rejected the proposal amid disagreement between departments.Officials in the Department for Transport encouraged electric car charge point operators to write to the Treasury explaining how they would respond to a VAT cut, according to three industry sources. The charger companies said that they would pass the tax cut on to consumers. Continue reading...
