eVED could cost UK economy up to £4.8bn
Introducing the Electric Vehicle Excise Duty (eVED) in 2028 could cost the UK economy £4.8bn and slow electric vehicle sale.
This is according to new research carried out by UK energy and infrastructure trade association BEAMA.
It warned that eVED could result in a 50% fall in electric vehicle sales – a similar rate to when New Zealand introduced the tax – with declining electric vehicle sales not replaced by increasing petrol and diesel sales.
The research also found that the new tax could cost the economy £4.8bn in 2028 and even more in 2029, which far exceeds the £4.3bn the government expects the new policy to raise by 2031.
BEAMA has now formed a coalition with EVA England, ChargeUK and REA to urge the government to delay introducing eVED until 2030.
Fiscal own goal
Matt Adams, head of electrical transport systems at BEAMA, said: “Introducing the pay-per-mile policy early is a fiscal own goal. It will slow EV uptake, reduce EV charging investments, and cost the UK economy more than the treasury stands to raise with the taxation.
“A delay to 2030 would provide essential stability at a critical point in the EV transition. Manufacturers in the EV supply chain need a clear message from government to continue investment into local communities and the wider UK economy.”
