VAT Electric Vehicle Charging 2023-02-07
2023-02-07
TAGS
Response quality
Questions & Answers
Q1
Partial Answer
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Context
The question addresses discussions on the VAT level for electric vehicle charging, focusing on the transition to net zero emission vehicles and support from Cabinet colleagues and motor industry representatives.
What recent discussions he has had with (a) Cabinet colleagues and (b) representatives of the motor industry on the level of value added tax for electric vehicle charging?
The Government are committed to supporting the transition to net zero emission vehicles to help the United Kingdom meet its net zero obligations, including £2.5 billion since 2020 to fund targeted vehicle incentives and charging infrastructure.
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Assessment & feedback
Specific discussions with Cabinet colleagues and motor industry representatives on VAT levels for EV charging were not addressed.
Response accuracy
Q2
Partial Answer
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Context
The question highlights the higher number of public EV chargers in Scotland compared to England and raises concerns about VAT rates for those unable to charge at home. It questions if the upcoming Budget will address this issue.
We know that Scotland has many more public electric vehicle chargers per head of population than England; according to the Department for Transport's January figures, it has 23% more per head and 73% more rapid chargers per head than England. However, we also know that those unable to charge at home have to pay 20% VAT on often already significantly more expensive chargers. If the Minister agrees this acts as a disincentive to switching to EVs, will it be fixed in the upcoming Budget?
The Scottish Government receives 25% more funding per person than equivalent UK Government spending elsewhere. Introducing VAT relief for EV chargers would impose additional financial pressures, as VAT is expected to raise £157 billion in 2022-23.
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Assessment & feedback
Specific question about VAT relief for public EV charging points was not addressed; instead, the response shifted focus to funding differences between Scotland and other parts of the UK.
Response accuracy