EV drivers using public chargers face 'payment tax'

EV drivers using public chargers face £227 ‘pavement tax’

An additional ‘pavement tax’ is the result of EV drivers paying the rate of VAT (20%) to charge publicly than charging at home (5%). From August 2022, the average cost of using a rapid or ultra-rapid charger rose from 44p/kWh in March to 56p/kWh. The average cost of charging at a fast or slow charger also rose, from 30p/kWh to 39p/kWh, respectively. This means that the average cost of EV charging for those with private parking is now £863 per year, compared to £1,418 for those without. The growing discrepancy between the cost of charging an electric vehicle at home and on public networks is incredibly concerning for the 38% of UK households without driveways. Commentators are urging the Government to take the relatively simple, low-cost, step and immediately axe the Pavement Tax. The charging-point operators across the UK are investing huge amounts of time and effort into creating a robust charging network that works for everyone, while EV drivers are only trying to do the right thing and reduce their carbon emissions.

The growing anxiety is that Government needs to be doing all it can and encourage as many drivers as possible to go electric. Therefore, it’s essential to bring the VAT rate at public chargers in line with the 5% that’s levied on electricity at home.