Industry says ‘pavement tax’ due to disparity in VAT rates is holding back transition away from fossil fuels

Electric vehicle drivers will spend an extra £85m on UK tax when using public car chargers this year because of a disparity in VAT rates that the industry has said is holding back the transition away from fossil fuels.

Home users of electricity pay just 5% VAT compared with the 20% rate that applies to businesses – including electric car charger operators. That means that people charging a car using public chargers face higher costs.

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Source: https://www.theguardian.com/environment/2025/feb/11/ev-electric-car-drivers-vat-public-chargers-pavement-tax