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EV drivers spend extra £85m on VAT when using public chargers

Industry says ‘pavement tax’ due to disparity in VAT rates is holding back transition away from fossil fuels

Electric vehicle drivers will spend an extra £85m on UK tax when using public car chargers this year because of a disparity in VAT rates that the industry has said is holding back the transition away from fossil fuels.

Home users of electricity pay just 5% VAT compared with the 20% rate that applies to businesses – including electric car charger operators. That means that people charging a car using public chargers face higher costs.

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