Vehicle Taxation   Peter Stonham and Deniz Huseyin  
LTT858   29 November 2022

Hunt’s decision to extend duty to EVs restarts road user charging debate

The chancellor’s announcement that electric cars will no longer be exempt from vehicle excise duty from April 2025 has re-ignited the debate on future road user charging, with the RAC describing the move as overdue while the AA feared it would subdue EV sales.

In his Autumn Statement, Jeremy Hunt said: “Because the OBR (Office for Budget Responsibility) forecasts half of all new vehicles will be electric by 2025, to make our motoring tax system fairer I’ve decided that from then, electric vehicles will no longer be exempt from vehicle excise duty.”


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