Seven in 10 drivers to be slapped with unfair £2,000 DVLA 'luxury' car tax costs next year
Electric car drivers will have to pay an extra £410 next year
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Seven in 10 British drivers will be forced to pay additional tax on their vehicle from next year when new rules come into force, according to new research.
The so-called “luxury” car tax for vehicles priced at more than £40,000 will impact at least 70 per cent of electric cars starting next year.
The tax changes mean electric cars that were previously exempt from paying the Expensive Car Supplement will now be in line with both petrol and diesel models.
The Expensive Car Supplement is paid in addition to the standard Vehicle Excise Duty rate and can see drivers fork out £410 a year.
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The new tax measures are expected to raise an extra £129million per year
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The new tax measures come as EVs registered between April 1, 2017, and March 31, 2025, will be liable to pay the current standard VED rate of £190.
In a bid to stop drivers being unfairly taxed, Auto Express has called on the new Labour Government to scrap the £410 luxury car tax for electric vehicles over fears it could add a further cost barrier for drivers.
A Freedom of Information request found that almost a third (31 per cent) of cars already pay the expensive supplement tax.
Electric cars had previously been exempted from paying VED, but that benefit will end on April 1, 2025.
Figures from the Society of Motor Manufacturers and Traders estimated the new tax measures will help the Labour Government raise an extra £129million per year.
Paul Barker, editor at Auto Express, explained that regardless of the price paid for a used EV, the car will be liable if it was originally bought for more than £40,000.
He warned: "The vast majority are going to be caught up in this extra charge. Some used EV buyers may not even know about the extra £410 a year cost until they go to tax their vehicles.
“Private and used vehicle uptake of EVs is not yet in a position to start adding cost barriers; more needs to be done to encourage drivers to move to this still-fledgling technology, not give another reason to hold off from making the shift.”
Previous SMMT figures revealed that private uptake of EVs fell by almost 11 per cent in June, with less than one in five EVs purchased privately.
Meanwhile, data from Carwow found that just 20 per cent of UK motorists would consider an EV for their next car, with 43 per cent saying the high costs were putting them off buying one.
Barker added: “There are currently too many reasons for drivers to not make the switch, and this is yet another to add to the list.
“We therefore echo the SMMT's call to remove this punitive tax that will impact the uptake of electric vehicles and provide additional cost likely to dissuade consumers from the very vehicles the Government wants them to adopt."
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EV drivers may have to pay £2,000 more on car tax
PAThe added tax burden on drivers will see EV drivers hit with roughly £2,000 in additional costs over the coming five years.
Under the previous VED rules, electric cars, which are currently in the 0g of CO2/km bracket, would not have to pay tax.
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