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Discussion Starter #1
1.245 Consumer incentives support the development of markets for new transport technology. The government is considering the long-term future of incentives for zero emission vehicles alongside the 2040 phase-out date consultation. Until then, the government will provide
£403 million for the Plug-in Car Grant, extending it to 2022-23. Recognising that the market for other ultra-low emission vehicles is still very small, the government will also
provide £129.5 million to extend the Plug-in Grants for vans, taxis and motorcycles to 2022-23. In addition, the Budget announces the exemption of zero emission cars from the Vehicle Excise Duty (VED) ‘expensive car supplement’ and the publication
of a call for evidence on VED, which will include how it can be further used to reduce vehicle emissions. (35, 44)
Sounds like good news
 

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Wow, so Tesla's are no longer going to be charged VED...
 

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Personally, I would have liked to see the plug in car grant removed completely and replaced by a reduced VAT rate on zero emission vehicles. I would have also liked a statement about a future policy measure being to increase the VAT rate on non zero emission vehicles with banding based on how polluting the vehicle was.

This would have sent a clear signal on a commitment to lower emissions from private vehicles and would help close the gap on the upfront price between petrol/diesel and electric cars.

However, I expect we can’t change VAT rules until we fully leave the EU in 2021...
 

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Personally, I would have liked to see the plug in car grant removed completely and replaced by a reduced VAT rate on zero emission vehicles. I would have also liked a statement about a future policy measure being to increase the VAT rate on non zero emission vehicles with banding based on how polluting the vehicle was.

This would have sent a clear signal on a commitment to lower emissions from private vehicles and would help close the gap on the upfront price between petrol/diesel and electric cars.

However, I expect we can’t change VAT rules until we fully leave the EU in 2021...
As I understand it there is a consultation underway. Governments can’t start punishing car buyers when there is a lack of supply of affordable EVs. The grant helps all EV buyers and the changes to luxury car tax helps a bit but does not end up creating yet more subsidies for the rich. My argument being if someone can afford to pay over £50k for a car then they can afford to pay extra vehicle tax. The £40k - £50k was a bit of a problem as in order to make a profit some fairly ordinary cars (Volvo, Ford etc) were priced at just over £40k.
I am sure the Grant will continue to fall in line with increased sales of EV (spreading a smaller sum across a larger number of buyers).
 
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