My family and I adopted electric vehicles early on, encouraged by the government’s push toward eco-friendly transport. Now, however, we’re facing a surprising financial hit. The government decided that EV owners will pay £190 in Vehicle Excise Duty (VED) from the second year onward, while older, smaller diesel cars registered before 2017 pay as little as £20 a year.
This doesn’t just affect us; it’s a larger issue. Older cars with high CO2 emissions end up paying less VED than new zero-emission EVs, which goes against the goal of reducing emissions. The principle of taxing vehicles based on CO2 emissions feels undermined, and it’s hard to stay motivated to go green when the incentives are fading.
Electric vehicles are essential for reducing greenhouse gas emissions. According to the Office for Low Emission Vehicles, EVs emit up to 60% less CO2 over their lifetimes compared to petrol cars. Yet, this decision seems to discourage EV adoption.
Please consider supporting this petition to urge the government to reevaluate this VED policy and encourage fairer taxation that reflects a vehicle’s environmental impact.
The UK Government states:
“From 1 April 2025, EV drivers will pay VED.” Chancellor Jeremy Hunt claimed in the 2022 Autumn Budget, “To make our motoring tax system fairer, I’ve decided that electric vehicles will no longer be exempt from VED.”
But fairer for whom? With the freeze on fuel tax, the revenue lost is being offset by taxing EVs and hybrids, but this won’t cover the shortfall created by ICE cars paying less.
Why should current EV owners stick with electric when the benefits are dwindling?
MAKENA said:
I’d support this tax if the funds went to building motorway charging infrastructure or adding lamp post chargers for people without driveways.
You don’t think it should also go toward road upkeep?
In many places, like in the US, fuel taxes fund road maintenance. Without fuel taxes from EVs, they’re making up the difference by adding extra registration fees for EVs.
abidemi said:
In many places, like in the US, fuel taxes fund road maintenance. Without fuel taxes from EVs, they’re making up the difference by adding extra registration fees for EVs.
The issue here is that older diesel cars, which are worse for the environment, are still paying less than EVs.
while owners of older, smaller diesel cars registered before 2017 are still paying as little as £20 a year.
EVs registered before 2017 also pay only £20. If you were early adopters, you’re likely paying that too. We’re talking about a difference of £170 annually—about the cost of a tire or minor service for an ICE car.
@izael
I see your point. Some people can afford it, and EVs do save money in the long run. My concern is that the government seems to lack consistent support for EVs. They’re pushing for all new cars to be electric, yet they keep hiking ownership costs, like they did with LPG and diesel cars.
@olivia
That’s true. Most EV incentives do benefit those who can afford them, so it might make more sense to use funds to support people who need help. And just to clarify, there’s no ban on owning petrol cars—only on new petrol car sales.
@izael
Fair point. I do wonder if, once ICE cars are phased out, the government will just keep raising costs for EV owners. For now, I own both an EV and an ICE car.
EV owners must pay a vehicle excise duty of £190 from the second year onward, while older diesel cars registered before 2017 are still paying as little as £20.
Doesn’t the fuel tax make up for this? UK fuel taxes are among the highest in the world, but EVs aren’t subject to them.
The government says no new taxes at the petrol pump next year.
@Mark
Good points. If you own an EV over £40k, you pay an additional £410 annually. Finding a good EV under £40k is tough. And EV drivers pay VAT on commercial charging, which is like a fuel tax. Starting in 2030, all new cars will be EVs, so this will affect everyone eventually.
Early adopters tend to be financially better off; that’s usually why they can afford to go first. Government incentives are meant to give initial support, but they often phase out once demand grows. Same with rooftop solar—the perks don’t last forever.
Cheap VED on ICE cars is balanced by fuel taxes—about £265 per year for 10,000 km. They also face ULEZ fees in London, which adds up and might spread to other cities soon. Carrot and stick approach: as the stick gets bigger, the carrots get smaller.