EVs and Road Tax

EXCERPT

In the Chancellor’s Autumn Statement he confirmed that from 2025, electric vehicles (EVs) will no longer be exempt from paying vehicle excise duty (VED, also known as road tax). This
briefing looks at what the Chancellor announced, and its likely impact on the UK’s transition
away from polluting vehicles.

Key Points:

• The Autumn Statement’s proposals will see electric cars paying more road tax than millions of petrol and diesel vehicles, creating an electric car tax penalty for motorists who opt for an electric car over many older petrol or diesel models.

• This tax penalty may cause people to continue to run older polluting cars for longer, which would increase emissions of greenhouse gases.

• The Chancellor should rethink his proposals, and introduce road tax for electric cars more gradually.