NFDA calls for Vehicle Excise Duty delay for electric vehicles
The National Franchised Dealers Association (NFDA) has urged the government to reconsider its £200 Vehicle Excise Duty (eVED) charge for electric vehicles.
In a letter to MP Dan Tomlinson, who is Exchequer Secretary to the Treasury with responsibility for tax and business policy, it has warned that the new tax could slow electric vehicle uptake.
Under new tax rules, electric vehicles registered from April 2025 will have to pay the standard VED rate from 2026/27, ending the long-standing tax exemption for electric vehicles.
The NFDA is now calling on the government to delay imposing new taxes on electric vehicles until the market reaches a point where adoption is self-sustaining.
Support
NFDA chief executive Sue Robinson said: “We are seeing a clear shift in consumer interest towards electric vehicles, driven in part by higher fuel prices. This is exactly the moment when government support can make a real difference, not add extra cost.
“Electric vehicles now account for 23.1% of the new car market, but this is still below what is needed to meet the ZEV Mandate targets. Removing the £200 annual charge would be a simple step that helps keep momentum going and gives consumers more confidence to make the switch.”
