New UK Tax Could Add £300 to EV Charging Costs, Industry Warns

Electric vehicle drivers in the UK could face significantly higher charging costs under proposed government tax changes that would impose business rates on public charging stations for the first time. The UK’s charging industry warns it could be hit with a collective £100 million bill, potentially adding up to £300 annually to drivers’ charging expenses if operators pass costs along to customers.

ChargeUK, the industry’s main trade body, estimates that approximately 64,000 parking spaces adjacent to charging stations would become subject to business rates under the new rules – taxes these facilities have been exempt from until now. The timing couldn’t be worse for the struggling sector, which is already grappling with slower-than-expected electric vehicle adoption rates across the country.

Industry representatives argue the tax changes could trigger a cascade of negative effects just as the UK tries to accelerate its transition to cleaner transportation. They warn that many charging sites may be forced to close, making it even harder for drivers to find convenient places to power their electric vehicles. The added financial burden could also discourage new investment in charging infrastructure, potentially slowing the rollout of stations needed to support the government’s ambitious climate goals.

This development highlights the delicate balance policymakers must strike between generating revenue and supporting the green transition. As the UK works toward phasing out gas-powered vehicles, ensuring adequate and affordable charging infrastructure remains crucial for convincing consumers to make the switch to electric vehicles.