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Tribunal Rebukes 20% VAT on Public EV Charging, Raising Pressure for 5% Rate

Rising petrol and diesel prices sharpen focus on lowering public charging costs for drivers without home access.

Overview

  • Judge Harriet Morgan ruled that the 20% VAT on public chargers disadvantages drivers without private premises compared with the 5% home rate.
  • HMRC can appeal the tribunal finding, with industry watchers warning of potential follow‑on legal actions by charge‑point operators.
  • RAC Charge Watch reports average pay‑as‑you‑go prices of about 83.2p/kWh at ultra‑rapid and 82.1p/kWh at rapid chargers, far above typical home rates.
  • Fuel costs continue to rise, with RAC citing average pump prices near 141.74p per litre for petrol and 161.2p for diesel during the Middle East oil crisis.
  • A separate survey reported that cutting public‑charging VAT to 5% could save drivers around £350 a year, with nearly half of respondents saying it would make them more likely to switch to an EV.