Experts have called for little-known car tax fees to be scrapped (Image: Getty)
A little-known should be scrapped to encourage motorists to ditch and vehicles, according to a leading expert.
Paul Baxter, CEO of claims on could boost the uptake of new EVs.
This is a meaning every car insurance holder in the UK is affected.
Petrol, diesel and electric car owners but Paul claims slashing costs for EV owners could act as an extra incentive to switch.
Analysis from The Green Insurer found 36% of motorists would be encouraged to replace their petrol or diesel vehicle for an EV if IPT rates were cut.
Insurance Premium Tax is levied on car insurance products (Image: Getty)
Paul said: “Scrapping or reducing Insurance Premium Tax on electric vehicles would be a straightforward way to help encourage drivers to make the switch from petrol or diesel cars.
“It is a tax that’s added to all general insurance premiums and is set and controlled by the Government.
“In the last decade it has doubled from 6% to 12% and scrapping it for electric vehicles would be a good short-term measure to boost sales.”
, analysis found that 64% of drivers believe that the Government had to incentivise road users to switch to electric cars.
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A survey found that just 31% of petrol and diesel vehicle owners say they intend to buy an EV or hybrid as their next model.
A further 34% admitted they were “indifferent” about the type of fuel their next car would use.
Previous analysis has revealed 60% of drivers view the higher purchase price of EVs as a deterrent to making the transition.
Paul added: “By getting more new electric cars on the road we are building a stock of greener used vehicles for the future. Scrimping on the environment is just something that we cannot afford.”
A report from the previously estimated IPT rates cost each household around £220 per year.
stressed any rule changes may not be fair for combustion owners and isn’t guaranteed to achieve its goal of getting more EVs on the road.
They commented: “This might be unfair to people driving petrol, diesel and hybrid cars. The argument being that, no matter what fuels your car, they’re all using the road and having to buy insurance.
“The cost saving might also not be enough of an incentive for people to switch to an EV.”