Asked by: Jonathan Davies (Labour - Mid Derbyshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent discussions he has had with the Secretary of State for Energy, Security and Net Zero on the potential merits of reducing VAT for public electric vehicle chargers.
Answered by James Murray - Financial Secretary to the Treasury and Paymaster General
Public EV charging is subject to the standard rate of VAT (20 per cent). This matches the VAT treatment of petrol and diesel, as well as all non-domestic electricity.
VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services. Exceptions to the standard rate have always been limited and balanced against affordability considerations.
The Government is currently undertaking a comprehensive review of public charging costs, looking at the impact of energy prices, wider cost contributors, and options for lowering these costs for consumers.