The introduction of an EV tax will “reduce” the attractiveness of electric cars.

Some car experts warn that the introduction of the EV tax could “diminish” the attractiveness of electric cars and cause some “real problems”. Jeremy Hunt’s plan could also hurt those looking to buy an electric vehicle ahead of the 2030 ban on new petrol and diesel cars.

Speaking on the introduction of the EV tax, National Scrap Car’s Dorry Potter told “An EV road tax will be introduced to make road tax in the UK ‘fairer’ as half of all sold New cars will be fully electric by 2025.

“The change means those buying a new zero-emission car on or after 1 April 2025 will have to pay the lowest first-year VED rate of £10 per year.

“After that, electric vehicles will be charged the same as petrol and diesel vehicles at a standard rate of £165 per year.”

However, the expert warned that the initial cost of EVs “is already a real concern and is the main barrier for most people to switch to an EV”.

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Ms Potter added: “Coupled with major problems with charging infrastructure across the UK and now with the added cost of taxing these vehicles, this reduces the attractiveness of the switch to electric vehicles for the general public who are currently in the midst of a crisis of the cost of living.

“The introduction of increased operating costs, the removal of incentives, and high energy bills are gradually eroding the benefits of electric mobility and making EVs less attractive to many.

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“However, if a motorist is considering the longevity of their purchase and is considering a new purchase, then an electric vehicle would still be a viable option with the 2030 gasoline and diesel ban just a little over seven years away, and average.” Lifespan of a new car.

“If a driver is contemplating buying a new electric vehicle, paying the road tax that you would pay on your old petrol or diesel vehicle will make little to no difference to those in the consideration stage of the purchase .

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If the current tax rate is calculated, this will cost EV owners £165 per year from the second year of registration.

Many EV owners also have to pay the expensive car surcharge. This is currently £355 per year for cars with a list price of £40,000 or more in the second to sixth years of registration.

The combined tax bill of £520 would “wipe out” the current difference in running costs between electric vehicles and petrol-powered cars, experts say.

Julie Daniels, motor insurance expert at Comparethemarket said: “Despite rising energy costs, drivers who have switched to an electric vehicle will be happy to see that it can cost significantly less to run than a petrol-powered car.

“In addition to the environment, these drivers benefit from savings on fuel and insurance.

“However, the significant upfront cost of buying an electric car and installing a home charging station will discourage many drivers from affording this option.

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“Higher taxes from 2025 could also make switching to an electric vehicle less attractive for many drivers.

“Both electric and petrol car owners could help reduce the cost of running their car by checking out their car insurance after their policy expires.

“Our figures show motorists could save up to £328 by switching before the Comparethemarket renewal.”