Alphabet calls for fairness and clarity on EV taxation from Burnham

Alphabet has called on Andy Burnham to prioritise fairness and clarity when considering changes on electric vehicle (EV) taxation policy, if he becomes Prime Minister.

It warned that eVED and benefit-in-kind (BiK) changes risked deterring businesses from switching to EVs.

eVED was identified as being particularly problematic, as it would apply to existing EVs, creating an administrative burden for leasing firms and higher costs for their customers, which could be passed on to company car drivers.

Alphabet argued that a simpler taxation regime, with tax embedded into EV charging costs, similar to fuel duty, would be a simpler solution.

Caroline Sandall-Mansergh (pictured), consultancy and channel development manager at Alphabet (GB), said: “We believe £15 to £30 will be added to monthly costs by eVED, so harming affordability and choice by potentially removing the cheapest vehicles from salary sacrifice schemes.

“Even small extra monthly costs can push vehicles out of reach, not just increasing prices but eliminating options entirely.

“The risk is that tax changes will remove this benefit for those it helps most, contradicting the Government’s stated equity goals.

“There’s also going to be an administrative burden that comes with eVED, with mileage tracking through impractical manual odometer checks and reporting to reconcile expenditure.