Jeremy Hunt imposes VED on electric cars in major blow for EV owners

Jeremy Hunt imposes road tax on electric cars in major blow for EV owners. (Image: Getty)Jeremy Hunt has today announced that all emission-free vehicles will have to pay Vehicle Excise Duty (VED) otherwise known as road tax in a major blow for EV owners. Last year, the Treasury warned that new sources of revenue would be needed as more electric vehicles hit UK roads and drivers switch to electric.There has been recent pressure on the Government to address the £35billion funding ‘black hole’ that will be left with the reduction in petrol and diesel cars.However, Steve Nash, CEO of the Institute of the Motor Industry, warned that the Government’s introduction of VED on electric cars could harm the sale of EVs in the UK.READ MORE: Drivers warned to ‘never’ buy fuel from certain petrol stations Experts have claimed that the introduction of VED on EVs could harm the sale of EVs. (Image: Getty)He said earlier this week: “The news reported that the Treasury plans to add vehicle excise duty to electric cars is not surprising to most in the industry – albeit it seems slightly counter-intuitive to the Government’s goal of reducing particulates.’Clearly the reduction in revenues from road tax on Internal Combustion Engine (ICE) vehicles is a concern for Government.’But we really hope that Jeremy Hunt doesn’t just see the addition of duty on electric vehicles as a means to generate income for Government coffers generally.’According to Zap-Map, there were more than 590,000 battery-electric cars as of the end of October 2022.DON’T MISS EV owners warned of abuse as charge rage increases [WARNING] Drivers urged to use ‘magic’ one-button trick to defrost the car [ADVICE] ‘Serious concerns!’ Drivers forced to drive without MOTs [INSIGHT] In February, a Government report suggested that motorists should be taxed based on the number of miles they drive. The Treasury said tax revenues would keep pace with changes prompted by the take-up of electric cars.The Government claimed ‘radical reform’ was needed otherwise there would be no revenue from motoring taxation once net zero is reached in 2050, and potentially even before in 2040.