Previously, electric car drivers didn’t have to pay any sort of tax after purchasing the car. It was a big issue of debate in many legislative settings. But recently, In the UK it was announced that from April of 2025, electric car drivers have to pay a certain amount of tax just to drive on the roads. As usual, this was not good news for the electric car owners.
Details about the tax and tax rate
Electric vehicles in any form have gone up since the beginning of 2022. Before that, it was just a portion of the very insignificant car sale. In 2022, the sale of battery-electric vehicles and plug-in hybrid cars has seen a record high sale. Under the plans for taxation, from April 2025, all the registered cars that are electric engine-based or electrically charged have to pay tax. The lowest amount of tax will be £10. This will shift to the standard amount of £165.
Statement from the government
As expected, the government has tried to explain and calm the situation. They mentioned in their statement that the current tax rate for electric vehicles is still lower than the traditional cars. But people are not having it. As they didn’t have to pay any tax for an electric car for so long, they are not comfortable paying tax for EVs now. Also, they are making their points by saying, the EV is a fuel-saving car. This saved the planet from fuel consumption, so why should they be taxed to preserve the world?
Reasons behind the Tax imposition
There could be many reasons why the government has imposed a tax on Electric vehicles. One thing is speculated that this is done to lower the sale of electric or any sort of car in the first place. Although electric cars don’t consume fuel, they use electricity which is produced by burning fuel for the majority of its portion.