The National Franchised Dealers Association (NFDA) is lobbying government to stop the planned introduction of a £200 annual Vehicle Excise Duty for electric vehicles.
It has written to Dan Tomlinson MP urging the Government to exe the £200 fee warning that it could slow EV uptake at a key moment of the transition to zero emission cars.
NFDA is stressing the importance of keeping incentives in place that encourage drivers to switch to electric vehicles and support the industry’s move towards zero-emission transport.
Under current plans, electric vehicles registered from April 2025 will begin paying the standard VED rate from the 2026/27 tax year, ending the long-standing exemption previously in place to encourage EVs uptake.
NFDA Chief Executive Sue Robinson said: “We are seeing a clear shift in consumer interest towards electric vehicles, driven in part by higher fuel prices. This is exactly the moment when Government support can make a real difference, not add extra cost.
“EVs now account for 23.1% of the new car market, but this is still below what is needed to meet the ZEV Mandate targets. Removing the £200 annual charge would be a simple step that helps keep momentum going and gives consumers more confidence to make the switch.”
NFDA is calling for EVs to be exempt from the standard VED rate until the market reaches a point where adoption is self-sustaining. It believes this would help support consumer demand, give clarity to the market, and strengthen the transition to electric vehicles.
