The group wants to see fees slashed from 20% to 5%, bringing them more fairly into line across the board.
Quentin Wilson, former Top Gear host and founder of FairCharge stressed the “archaic rule” had to be ditched.
He said: “I ask the Chief Secretary of the Treasury that he must realise, with the UK as the most successful EV market in Europe, the opportunities for growth in the sector are significant.
“But holding that growth back is an archaic piece of tax legislation conceived before the era of electric cars.
“So many voices are now calling for a cut in the VAT on public charging that the Treasury’s negative response seems almost churlish. We spoke about this unfair tax anomaly before Labour came to power. It’s time for you and I to talk again.”
According to analysis, bringing VAT rates into line at 5% should save drivers around £130million per year by 2030.
The UK public charging market is estimated to generate close to £1.1bn of customer spending by 2030 with £183m set to be VAT charges.
As of December 2023, there are now over 900,000 electric vehicles on the road in the UK, accounting for about 3% of all cars in the country.
Matt Galvin, Managing Director, Polestar UK has also demanded fees be immediately cut to help support the electric car transition.
We have been calling for VAT on public charging to be brought into line with home charging for some time now. This is an urgent requirement to support EV adoption, particularly to encourage the private buyer, and prevent unfair costs to those without driveways.
“Manufacturers have invested billions of pounds in EV technology to meet mandates and now the industry needs the Government to play their vital role in achieving a net zero car market which is pivotal to improve air quality and slow down climate change.”
