The chancellor Jeremy Hunt has said in his Autumn Statement that to make the motoring tax system ‘fairer’, electric vehicles will no longer be exempt from Vehicle Excise Duty from April 2025.
Commenting, Ashley Barnett, head of fleet consultancy at Lex Autolease, said: “The electric vehicle market has grown exponentially in recent years, creating a shortfall in motoring tax revenue. However, when coupled with rising vehicle and electricity prices, we must remain cautious of introducing further barriers to adoption.
“The introduction of VED on EVs won’t immediately stall future uptake, but it does highlight the need for a more coherent and joined up conversation between government departments and industry bodies to simplify what is becoming an overly complicated vehicle taxation system. Vehicle Excise Duty must operate in a fair, emissions-based way if we are going to continue to clean up the older and more polluting vehicles on the UK’s roads.”
Keyword: Autumn Statement: EVs no longer exempt from VED from April 2025