Labour urged to cut public EV charging VAT from 20 per cent to five per cent, saving drivers £350 a year
By Eve
A poll of 3,700 UK motorists found 47.5 per cent would be more likely to switch to electric vehicles if VAT on public charging dropped from 20 per cent to five per cent, a change that could save drivers around £350 annually. On 27 February 2026, a First-tier Tribunal ruled that public EV charging should be subject to the five per cent VAT rate, addressing an imbalance that penalised drivers without driveways. More than a fifth of respondents lack home charging capability, and 76 per cent said cheaper public charging would improve EV accessibility for those without home options.
Why it matters
The tribunal ruling and potential VAT cut could reshape demand for public charging infrastructure, making it more competitive with home charging and expanding the addressable market for charge point operators serving drivers without off-street parking. Procurement teams may see increased utilisation and revenue potential at public sites if the lower VAT rate is implemented.
Source
- Source
- https://www.birminghammail.co.uk/motoring/motoring-news/labour-urged-cut-tax-electric-33609908
- Original title
- “Labour urged to cut tax for electric cars and save them £350 a year”
- Published
- 17 March 2026
- Updated
- 18 July 2026
In this story
- Topic
- Policy & Market
- Place
- United Kingdom
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