RAC demands VAT cut for EV chargers after 50 per cent jump in charging costs

The RAC has called on the government to cut the VAT rate at public electric vehicle charging points following a 50 per cent increase in charging costs over the past eight months.

Data published today by the motoring group show that it now costs 70.3p per kilowatt hour (kWh) to rapidly charge an electric vehicle (EV) on a pay-as-you-go basis. 

This is up from the 63.3p reported in September, meaning that it now costs £36 to charge a family-sized electric car enough to cover 188 miles.

This is more than double the cost of charging electric cars at home, which costs around £17.87 to fully charge a car.

Charging costs can go even higher when using ultra-rapid chargers, where it costs 74.8p per kWh.

The RAC has therefore called on ministers to cut the VAT rate at EV public chargers from 20 per cent to 5 per cent, which it predicts will lead to costs to between 61.5p and 65.4p per kWh. 

Commenting on the RAC’s demands, Top Gear’s former co-host Quentin Wilson called the VAT policy “archaic” because it means that those “without home charging pay four times the rate of tax as those charging at home.”

“The government should set this right, not simply out of sheer unfairness but also to ensure public charging remains an affordable option for all drivers as we seek to bring down air pollution and decarbonise our roads,” Wilson, who has also founded the FairCharge campaign, said.

A spokesperson for the Treasury said the government was spending £2.5bn “to help incentivise uptake and fund the rollout of charging infrastructure across the UK.”