Tax On Electric Vehicles
Arvind Singh
| 12-12-2023
· Vehicle Team
The recent announcement by the British Chancellor of the Exchequer Jeremy Hunt to impose a vehicle consumption tax (VED) on electric vehicles from April 2025 has sparked a debate about the future of clean energy vehicles in the UK.
The move is aimed at making the car tax system "fairer" as the Office of Budget Responsibility predicts that by 2025, half of all new cars will be electric vehicles.
The minimum rate of VED for electric cars will be £10 in the first year and gradually increase to the current standard rate of £165. This tax will also apply to electric vehicles registered for the first time since April 2017 and the exemption of electric vehicles from the extra service fees for expensive cars has also been canceled.
While the UK government plans to ban the sale of new gasoline and diesel cars from 2030, the imposition of taxes on electric vehicles could discourage people from making the switch to clean energy vehicles. It is important to consider the numerous benefits that electric vehicles offer over traditional gasoline-powered vehicles.
One of the key advantages of electric vehicles is that they produce little to no environmental pollution. In cities, where there is a high concentration of vehicles, traffic lights, and stop-and-go traffic can lead to high levels of exhaust emissions from traditional gasoline-powered cars.
Electric vehicles, on the other hand, use the principle of regenerative braking to convert the kinetic energy of the vehicle into electricity that is stored in batteries or other energy accumulators. This not only reduces energy consumption but also helps improve air quality in cities.
Another advantage of electric vehicles is their wide range of use and immunity to environmental conditions. Unlike diesel locomotives, which can either not work or become less efficient in conditions such as lack of ventilation, low temperatures, or lack of oxygen at high altitudes, electric vehicles are not affected by such conditions and can be used consistently and efficiently.
Moreover, the increasing availability of charging infrastructure and the declining cost of batteries have made electric vehicles a more attractive and affordable option for consumers. With the development of fast charging technology, electric vehicles can be charged in a matter of minutes, reducing the inconvenience associated with long charging times.
While the imposition of taxes on electric vehicles may seem like a step backward in the transition to a cleaner and more sustainable transportation system, it is important to consider the numerous benefits that electric vehicles offer over traditional gasoline-powered vehicles.
The UK government should consider promoting the use of electric vehicles through incentives such as tax credits, rebates, and investment in charging infrastructure instead of imposing taxes on clean energy vehicles. The promotion of electric vehicles not only helps reduce carbon emissions and improve air quality but also helps the UK meet its long-term goals of transitioning to a low-carbon economy.