Aftermarket February 2023

8 AFTERMARKET FEBRUARY 2023 BIG ISSUE www.aftermarketonline.net T he decision to impose road tax on EVs from 2025 onwards was one of the headline announcements made by Chancellor of the Exchequer Jeremy Hunt as part of the Autumn Statement, as the government looked to increase tax takes as the UK entered what is predicted to be a long recession . Up until now, electric vehicles had been exempted from Vehicle Excise Duty, but the fact that they are set make up half of all cars sold in two years time, as predicted by the Office For Budget Responsibility (OBR) has led the government to make the long-expected move. Announcing the measure, Jeremy Hunt said: "Because the OBR forecasts half of all new vehicles will be electric by 2025, to make our motoring tax system fairer I've decided that from then, electric vehicles will no longer be exempt from vehicle excise duty." Contribution SMMT Chief Executive Mike Hawes said: “We recognise that all vehicle owners should pay their fair share of tax, however, the measures announced today mean electric car and van buyers – and current owners - will face a significant uplift in VED. The sting in the tail is the VED supplement which will unduly penalise these new, more expensive vehicle technologies. The introduction of taxes should support road transport decarbonisation, and the delivery of net zero, rather than threaten both the new and second-hand EV markets. “With a ZEV mandate on the way for car and van manufacturers, we VED ON EVS – INDUSTRY RESPONDS For the automotive sector, VED being applied to EVs was THE big announcement in Jeremy Hunt’s Autumn Statement