A new car tax charge is set to hit motorists next Spring (Image: Getty)
Labour has been urged to axe a planned rise set to increase charges for
Experts at NewAutomotive have called for the Government to abolish the planned increase in for all- from next spring.
The Government plans to bring from April 2025.
It means EV owners will be forced to pay at least £190 per year to stay on the roads – although charges could rise by next year.
It’s the after having been exempt from VED fees up until now.
Electric car owners will pay VED from April (Image: Getty)
The suggestions were put forward as part of NewAutomotive’s ‘Vehicle Taxation: The Next 25 Years’ report released on Monday.
Ben Nelmes, CEO of stressed the new charges would introduce an “electric car tax penalty” for thousands of owners across the UK.
He said: “It’s wrong to think that the transition to cleaner transport will take the public finances over a ‘cliff edge’.
“Electric cars aren’t a sin to be taxed but a boon for the economy. Our recommendations suggest a way forward for the Chancellor that is simple and would avoid the kind of bad outcomes seen in other countries that introduce pay-per-mile charging on electric cars.
DON’T MISS [COMMENT]
“Our recommendations would avoid the creation of an electric car tax penalty that is currently due to come into force in April 2025, and which may prevent more people from accessing the benefits of getting a used electric car.
“EVs can be good for motorists and the taxman – a win-win for people and the planet.”
NewAutomotive has also called for Chancellor Rachel Reeves to rule out the introduction of a “generalised pay-per-mile road pricing| charge for the duration of the Parliament.
The group has also demanded an increase to the threshold for the Expensive Car Supplement.
Currently, this is set at just £40,000 which means most of the brand-new middle to top-end electric cars exceed it.
The suggestions come just days after Polestar’s UK boss Matt Galvin suggested Britain was the “worst” place for EV incentives.
He explained: “It is widely understood and accepted that the UK is the most poorly incentivised market in Europe for transitioning to electric cars. We are the worst – make no bones about it – it is fact.”