Experts have called for the Government to hike certain tax rates to ensure motorists are able to access affordable electric vehicles ahead of new tax changes in April.
The Expensive Car Supplement is an additional cost added to vehicles which have a market value of more than £40,000, which applies to many electric vehicles.
The ECS is applied to expensive vehicles for the first five years from the start of the second licence, despite criticism from drivers and experts.
A number of electric cars available on the market cost more than £40,000 despite the Government and manufacturers pushing for more EVs to hit the market.
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Experts have called for the Expensive Car Supplement levy to be raised to £50,000
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Any new electric vehicles purchased after April 1, 2025, will pay the extra first year rate of tax, as well as the Expensive car Supplement if it costs more than £40,000.
The ECS, which is also referred to as the "luxury car tax", was referenced in the Autumn Budget with the Government recognising the "disproportionate impact" on electric vehicles.
However, the Government clarified that it would not make any changes at present and only consider new measures "at a future fiscal event".
Stuart Masson, editorial director of The Car Expert, has called for the threshold to be raised to £50,000 to help boost electric vehicle sales to make them more affordable and attractive to motorists.
He added: "If the goal is for EVs to make up 80 per cent of all new car sales in the next five years, the Government needs to be creating policies to turbocharge new EV sales, not harm them.
"Both the Government and the luxury car tax threshold need to move with the times and reflect market realities."
A recent study found that only three per cent of electric vehicles available on the new car market cost less than £30,000.
As a result, many drivers who buy an electric vehicle after April 1, 2025, will be required to pay the ECS, even if the vehicle would be considered "entry-level".
Raising the level to £50,000 would ensure that many vehicles with impressive battery ranges would be eligible to avoid the ECS payment, boosting their attractiveness to drivers looking to get behind the wheel of a new zero emission vehicle.
This could be particularly helpful for families who require their cars to be larger if they have young children, but still want to invest in an electric vehicle.
Masson highlighted several popular models that fall below the current £40,000 threshold for the ECS including the Kia EV3, which was ranked The Car Expert's 2025 Car of the Year, or the 2024 Car of the Year, the MG 4.
The expert also recommended that drivers looking to get their hands on a new electric vehicle should act before the April changes are introduced.
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The Kia EV3 falls under the £40,000 ECS threshold
KIAHe said: "For customers looking to buy a new EV that’s likely to be impacted by this tax, we recommend trying to take delivery of your new car before the end of March, or buy a pre-registered one.
"That way, you’ll beat the tax increase that comes into effect from April 1 - saving you hundreds of pounds this year, and for the next five years as well."
