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EV & Sustainability

69% of drivers believe EV owners should pay road tax

Simon Staton said: "Whilst fleets have driven much of the EV transition to date, businesses are now having to grapple with these cost increases."

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EV Brindley Group
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A survey by fleet management specialist Venson Automotive Solutions has found that 69% of UK drivers believe that electric vehicle (EV) owners should pay road tax, also known as Vehicle Excise Duty (VED).

Venson conducted a similar survey in 2022, which found that only 18% of drivers supported VED for EVs.

The Government began charging EV owners for VED in April, with the first year to cost £10, then £195 for subsequent years.

The Expensive Car Supplement (ECS) was also applied to EVs, adding £425 per year to the VED bill of any EV over £40,000 for five years, beginning one year after initial registration.

Simon Staton, client management director at Venson Automotive Solutions, said: “Strong public support for taxing EV’s rubberstamps the sentiments of UK motorists, who clearly feel it’s only fair EV drivers contribute their share financially to improving our roads just like those driving internal combustion (ICE) vehicles.

“However, this level-headedness from UK drivers offers little comfort for the many businesses now facing an additional £620 per annum tax bill on many fleet EVs.

“Whilst fleets have driven much of the EV transition to date, businesses are now having to grapple with these cost increases and their impact on whole-life fleet costs.

“This could, in turn, force fleets to reassess their fleet strategies.”

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29% of respondents who thought it was fair that EV drivers had to pay VED also said that the £10 initial tax bill should be scrapped, and the standard tax rate of £195 should apply immediately.

A third of respondents also supported a road pricing scheme, believing it could help the Government make up the tax shortfall from the EV transition.

16% also believed that drivers should be taxed based on miles driven, while 15% believed a ‘pay-as-you-drive’ telematics scheme would be a good solution, and 9% said there should be a ‘business usage charge’ for company car and van drivers.

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Staton said: “If the Government wants to maintain the upward trajectory of EV sales it needs to look after fleet. 

“Indeed, it was welcome news to hear rumour that the Government may consider raising the Expensive Car Supplement Threshold at a future fiscal event, which could help bring these costs down.

“In the meantime, however, businesses may well pause for thought before growing their EV fleet.”

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