Treasury rejected ministers’ plan to cut VAT on public EV charging to 5%
The Treasury has rejected a proposal to reduce the VAT on public electric vehicle (EV) charging from 20% to 5%. The Department for Transport supports the reduction, citing concerns over fairness for those without home charging options. Critics argue that the current VAT rate is hindering the transition to electric vehicles, especially in urban areas.
- ▪The Treasury's decision comes amid disagreements between government departments regarding the VAT rate for public EV chargers.
- ▪The Department for Transport has encouraged charge point operators to advocate for a VAT cut to benefit consumers.
- ▪A recent tax tribunal ruling suggested that the VAT rate for public charging should be 5%, but HMRC is appealing this decision.
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HMRC has insisted that the VAT rate for public chargers is 20%. Photograph: Christopher Thomond/The GuardianView image in fullscreenHMRC has insisted that the VAT rate for public chargers is 20%. Photograph: Christopher Thomond/The GuardianElectric, hybrid and low-emission carsTreasury rejected ministers’ plan to cut VAT on public EV charging to 5%Department for Transport is understood to back reducing levy, which critics have called a ‘pavement tax’ Business live – latest updates Jasper JollySun 24 May 2026 03.00 EDTLast modified on Sun 24 May 2026 03.01 EDTSharePrefer the Guardian on GoogleGovernment officials considered cutting the VAT charged on electricity used at public EV chargers from 20% to 5% at the last budget, but the Treasury under chancellor Rachel Reeves rejected the…
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