UK Tax Change May Doom Electric Vehicles

Renault Twizy 1 photo
Photo: The Telegraph
The only reason people bought EVs in the first place was to dodge the ever increasing taxes. This concept is threatened by a recent decision by the UK government to force company car drivers who run EVs to pay company car tax, from which they are exempt at the moment.
When it comes to low-emissions vehicles like the Prius, Insight and Ampera, for which one is currently required to pay 5% company car tax, will attract a 13% tax along with zero emissions vehicles, making them redundant for fleet use.

The changes threaten the Eco car market in the UK as more than half of all EVs sold in the UK in 2011 were bought by companies for fleet use and with the tax benefits gone, there is a high likelihood of companies dropping EVs altogether as the market of cheap sub 100 g/km cars is ever expanding.

Story via Auto Express
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