Electric vehicles no longer exempt from road tax - good idea or bad?

  • Marc's Avatar
    Former Community Manager
    The Chancellor has announced electric vehicles will no longer be exempt from Vehicle Excise Duty from April 2025 to make the motoring tax system "fairer".

    Previously EVs had been exempt from tax as it was used as a means of encouraging more drivers to switch to renewables as part of the Government's plan to phase out petrol and diesel cars in the UK.
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  • 2 Replies

  • Marc's Avatar
    Former Community Manager
    And some thoughts from the RAC πŸ‘

    RAC head of policy Nicholas Lyes said: β€œAfter many years of paying no car tax at all, it’s probably fair the Government gets owners of electric vehicles to start contributing to the upkeep of major roads from 2025.

    "While vehicle excise duty rates are unlikely to be a defining reason for vehicle choice, we believe a first year zero-VED rate benefit should have been retained as a partial incentive. But we don’t expect this tax change to have much of an effect on dampening the demand for electric vehicles given the many other cost benefits of running one.

    "The fact that company car tax increases on EVs will be kept low should also keep giving fleets the confidence to go electric which is vital for increasing the overall number of EVs on our roads.”
  • Santa's Avatar
    It was bound to happen sooner or later. VED is nothing to do with road maintenance though - it's just another tax that motorists have to pay. Of course, those of us still using fossil fuels will continue to pay taxes at the pump as well as VED.