ELECTRIC cars will have to pay road tax from 2025 to put new cars on par with old petrol ones.
The Chancellor used his Autumn Statement to announce major changes to the way that electric car drivers are taxed.
Vehicle Excise Duty will have to be paid by electric cars and vans in the years to come, he said.
That will help rake in billions more for the Chancellor as more people making the swap to electric cars.
Mr Hunt said today: “Because the OBR forecasts half of all new vehicles will be electric by 2025… to make our motoring tax system fairer, I have decided that from April 2025 electric vehicles will no longer be exempt from Vehicle Excise Duty.
“Company car tax rates will remain lower for electric vehicles and I have listened to industry bodies and will limit rate increases to 1ppt a year for three years from 2025.”
After 2035, no new petrol or diesel cars will be able to be sold in the UK as millions make the eco switch in a bid to go green.
But the move could put people off making a swap from fossil fuelled vehicles – which are already more expensive for hard-pressed families.
Overall they are cheaper to run, and less to charge than the average car is to fill up.
