The government is taking steps to encourage the purchase of electric vehicles by increasing the first-year Vehicle Excise Duty (VED) for many new petrol, diesel, and hybrid cars. This change will take effect in April.
Currently, electric vehicles are exempt from VED charges, while cars emitting between 111g and 150g/km of CO2 pay £220. Those emitting more than 255g/km pay £2,745 for their first year.
Under the new system, buyers of electric vehicles will pay £10 for their first year's VED, while all other rates will double. This means that a new Ford Puma driver can expect a first-year VED rate rise from £220 to £440, while a buyer of a Range Rover could pay as much as £5,490, up from £2,745.
The government is also maintaining electric vehicle incentives in the company car tax regime and extending 100% first-year allowances for zero-emission cars and electric vehicle charge points for a further year.
5 Comments
Rotfront
Taxing vehicles more will not solve the environmental problem, we need better solutions.
Matzomaster
There are better ways to address climate change than making driving more expensive.
Karamba
This is a regressive tax that will disproportionately affect low-income families.
Pupsik
Why should people be punished for choices they have to make based on their financial situation?
Marishka
This will only encourage people to buy used gas cars, not switch to electric.