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.