Driving an EV in UK all set to get costlier, subsidy to be thrown in bin

  • Electric vehicles in the UK attract significantly less tax than petrol or diesel-powered counterparts. But this is all set to change.
File photo used for representational purpose. (REUTERS)
File photo used for representational purpose.
View Personalised Offers on
Notify me

The United Kingdom is wading through troubled economic waters and EVs or electric vehicles are likely to be sacrificed at the alter of revenue generation. The subsidy offered on battery-powered vehicles in order to make them more popular is all set to be done away with from 2025 onwards which means that buying and driving such vehicles would become costlier.

Many countries across the world have subsidies in place to quicken the pace of adoption for battery electric vehicles or BEVs. These claim to incentivize purchases of such vehicles and the UK has been offering exemption from vehicle excise duty (VED) as well. But the present financial woes of the country is a massive challenge for the government here and Chancellor (Finance Minister) Jeremy Hunt recently announced VEDs would be done away with from 2025 onwards.

Also check these Vehicles

Find more Cars
Tata Sierra Ev (HT Auto photo)
UPCOMING
BatteryCapacity Icon69 kWh Range Icon420 Km
₹ 25 - 30 Lakhs
Alert Me When Launched
Mg 4 Ev (HT Auto photo)
UPCOMING
BatteryCapacity Icon64kWh Range Icon350 km
₹ 30 - 32 Lakhs
Alert Me When Launched
Mg Windsor Ev (HT Auto photo)
BatteryCapacity Icon38 kWh Range Icon331 km
₹ 13.50 - 15.50 Lakhs
Compare
View Offers
Tata Harrier Ev (HT Auto photo)
UPCOMING
BatteryCapacity Icon50 kWh Range Icon400 Km
₹ 22 - 25 Lakhs
Alert Me When Launched
Honda Elevate Ev (HT Auto photo)
UPCOMING
₹ 18 Lakhs
Alert Me When Launched
Tata Curvv Ev (HT Auto photo)
BatteryCapacity Icon55 kWh Range Icon585 km
₹ 17.49 - 21.99 Lakhs
Compare
View Offers

Driving an EV in the UK so far has been a much more affordable option compared to a petrol or diesel-powered car because of significantly less tax. But is it fair? "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," Hunt said.

It is a move that has not been quite well received from the British automotive industry with fears that it could stunt the growth and prospects of EVs. But it isn't as if the move comes out of the blue. The country plans to end the sales of conventional vehicles from 2030 and an unlimited tax-free or less-tax run for EVs was always going to fade. Nonetheless, what would doing away with VED mean for brands like Jaguar which plan to have an all-electric lineup, remains to be seen.

Check out Upcoming EV Cars in India, Upcoming EV Bikes in India.

First Published Date: 18 Nov 2022, 11:54 AM IST
NEXT ARTICLE BEGINS

Check Latest Offers

Please provide your details to get Personalized Offers

Choose city
+91 | Choose city
Choose city
Select a dealer

Want to get the best price for your existing car?

Powered by: Spinny Logo
By clicking "View Offers" you Agree to our Terms and Privacy Policy
Dear Name

Please verify your mobile number.

+91 | Choose city
Couldn't verify the OTP.
It's either expired or it's incorrect.