Tax break is next step towards 5 million electric vehicles

December 10, 2009

The five year suspension of company car tax for electric vehicles (EVs) announced this week is one of a number of incentives needed if electric cars are to realise their potential on British roads.

Currently there are approximately 2,600 electric vehicles on British roads, a figure that represents 0.01 per cent of the total number of cars on our roads, but according to research carried out by the Department for Transport (DfT), by 2030 there could be as many as 5.8 million EVs in this country.

However, if current incentives are left in place and no additional action is taken they forecast that there could be as few as 500,000.

A spokesperson for the Environmental Transport Association (ETA) said: “If they are ever to compete on equal terms with petrol and diesel-engined cars, in the short to medium term there need to be incentives for car makers to build and drivers to buy EVs drivers to buy electric vehicles.”

Incentives to buy electric cars

Why buy an electric car? the following incentives are unlikely to stay once EVs become popular
No road tax (Vehicle Excise Duty) All electric vehicles are exempt from VED, a tax on vehicle emissions that from 2010 will be as much as £435 per year for the most polluting cars
Very little duty on fuel Electric cars are charged in the main from the household supply, a source of energy taxed at 5 per cent whereas over 60 per cent of the cost of petrol is fuel duty and VAT
No congestion charge Electric cars are exempt from the London congestion charge
£5,000 grant The British government is to follow the lead of other countries including China and America and offer rebates of up to £5,000 to drivers who buy electric cars. The scheme, will run from 2011
Free fuel There are free re-charging points dotted around the country
Free parking Many area of the country offer free parking for EVs

Information correct at time of publication.

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