Motor Vehicles: Excise Duties

(asked on 21st December 2022) - View Source

Question to the HM Treasury:

To ask His Majesty's Government, further to the Autumn Statement announcement on vehicle excise duty (VED) changes, whether they intend to levy annual VED of £165 from 2025 on electric vehicles; whether pre-2017 petrol and diesel vehicles rated at less than 110 gCO2/km will continue to pay £20; and whether those rated 110–120gCO2/km will continue to pay £30; if so, what are their reasons for charging lower road tax on more polluting vehicles; and if not, what steps they will take to ensure that electric vehicles are not charged higher VED than more polluting vehicles.


Answered by
Baroness Penn Portrait
Baroness Penn
Minister on Leave (Parliamentary Under Secretary of State)
This question was answered on 10th January 2023

In his Autumn Statement the Chancellor announced that electric cars, vans and motorcycles will begin to pay Vehicle Excise Duty (VED) in the same way as petrol and diesel vehicles from April 2025. With the EV transition accelerating, it’s right that all drivers start to make a fair tax contribution through changes to VED.

The details requested are included in the Autumn Statement document and in the tax information and impact notes.

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