EV owners could foot a total bill of £169.5m a year in road taxes after excise duty introduction
Electric vehicle owners could pay up to £169.5m a year in road taxes, according to new research.
Figures published today by Forbes Advisor reported that if electric vehicles (EVs) were to pay the same amount of vehicle excise duty (VED) as petrol and diesel cars – £165 per year – it will cost their owners a total of £89.5m annually.
If rates were to be reduced at £100 per year, costs would still be around £54m, while prices could go as high as £169.5m if combined with the VED supplement.
The supplement is paid for five years at the set fee of £355 annually by owners of cars worth more than £40,000.
“Widening the VED net to include electric vehicles is a logical move for an administration hungry for revenue, even if it will come as a shock to affected drivers,” said Kevin Pratt, car insurance spokesperson at Forbes Advisor.
“Along with the suggestion deep within the Office for Budget Responsibility analysis that a ‘planned’ increase in fuel duty in March could slap 12 pence per litre on petrol and diesel, this was an unhappy package of measures for drivers, whatever type of car they drive.”
Announced on Thursday’s Budget Statement, the Chancellor’s decision to introduce an EV vehicle excise duty caused fears among manufacturers.
Powerhouse Nissan said it was “concerned” about the effect it could have on potential customers.
The manufacturer’s words were echoed by Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders (SMMT), who said: “With a zero emission vehicle mandate for car and van manufacturers, we need a framework that encourages consumers and businesses to buy electric vehicles.”