There have been calls for new car tax fees to be axed (Image: Getty)
Experts have demanded a new fee is axed as hefty charges are set to hit almost two million road users in just months.
From April 2025, will pay rates for the first time after years of being exempt.
The Department for Transport recently confirmed the change
to use the roads currently paid by petrol and diesel vehicles.
Meanwhile, owners of new models valued over £40,000 are Expensive Car Supplement in a double blow.
Electric vehicles will pay VED from April 2025 (Image: Getty)
The rule means some owners to use the
EV charging solution provider has previously called on the new Labour Government to introduce substantial investment to support the transition to electric vehicles.
They have now called on Sir and ministers to rethink tax rates for commercial zero-emission vehicles to encourage more to make the switch.
Stuart explained: “Offering financial incentives to fleet operators can make the switch more financially appealing.
“It is no secret that many businesses are operating under tight budgets at the moment, so this kind of targeted help could be crucial.
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“Businesses will then reap the benefit. Although upfront costs for EVs are usually higher, the total cost of ownership is significantly lower.
“The benefits of EVs include reduced fuel costs and reduced maintenance costs, as EVs have fewer moving parts which means they typically spend less time needing running repairs.”
According to , as of September 2024, there are now over 1.9million EVs registered in the UK meaning changes could affect a lot of individuals.
As well as scrapping planned VED rate rises, Virta has also called for “fairer pricing for electricity”. This includes reducing VAT on public charging stations to five percent instead of the current 20 percent charge.
They also want to see new price caps and the introduction of carbon credits, which they stress are already in place across Europe.
Virta has also called for a widening of the criteria around the Plug-in Van Grant to ensure all current zero-emission models are eligible.
Officials should also extend EV infrastructure grants to “support larger scale installations at depots supporting commercial fleets”.
Stuart added: “The only question for fleet managers is when they make the switch. That’s why targeting incentives at this group could help drive faster adoption of EVs which, in turn, will lead to improvements in charging infrastructure.
“A growing number of company cars on the roads are EVs because of incentives like lower tax rates, but there is no equivalent opportunity for commercial vehicles, so the change won’t be driver led – fleet owners must be incentivised to make the switch.”