According to experts, the proposed environmental levy for ICE vehicles would help generate funds to slash the cost of electric cars for consumers in the UK.
It comes after the UK government previously offered financial support through the Plug-In Car Grant scheme, which provided up to £1,500 towards the purchase of electric and plug-in hybrid vehicles, but this was scrapped in 2022.
However, experts have warned the current measures are not enough for the UK to remain on target for its net zero ambitions by 2050.
Managing director of International Motors, William Brown which imports Subaru and Isuzu vehicles to the UK suggested that the Government should reintroduce financial support for private buyers purchasing electric vehicles.
He said, “Maybe the only solution is to have some sort of additional environmental tax on ICE vehicles. On the one hand, you’re sending a clear message that you can buy an ICE vehicle, but it’s going to cost more money. But with that money, you can reinvest it to help fund incentives to get people on the journey to EVs.”
The end of the grant scheme has contributed to slower adoption rates of electric vehicles among private buyers, with most new electric cars now being sold to fleet customers rather than individual consumers.
Official reports detailed how only 18.7 per cent of new car sales in 2024 are fully electric, falling short of Government targets. To stay on track the UK would need to have at least 22 per cent on new car sales electric this year, moving to 80 per cent in 2030 and 100 per cent in 2035.
Brown added, “What I’d like them to do is incentivise consumers to buy electric vehicles. The problem is we need more demand for electric vehicles and the only way to do that is to help consumers with the buying decision.”
His proposal for an environmental tax on petrol and diesel vehicles aims to create a self-funding system for electric vehicle incentives.
The International Motors boss suggested the additional cost on conventional vehicles would send a clear signal to consumers while generating revenue for EV grants.
Under the Government’s Zero Emissions Vehicle mandate, car manufacturers face increasingly stringent targets for electric vehicle sales.
The industry trade body has been calling for VAT to be halved on new electric cars to stimulate demand as well as a reduction in VAT on public EV charging to match the rates for home charging.
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