Rachel Reeves kicks off 'Awful April' with new £425 'luxury' car tax hikes penalising millions - 'Unfair' (0.01702127659574468)
<iframe frameborder="0" height="100%" scrolling="no" src="https://www.gbnews.com/res/scraper/embed/?video_url=https%3A%2F%2Fmm-v2.simplestream.com%2Fiframe%2Fplayer.php%3Fkey%3D3Li3Nt2Qs8Ct3Xq9Fi5Uy0Mb2Bj0Qs%26player%3DGB003%26uvid%3D52664692%26type%3Dvod%26viously_id%3DwpUGSebN9YO" width="100%"></iframe><br/><p>Electric vehicle owners have been warned of major car tax rises, which launch today, with millions now facing new £425 costs yearly.</p><p>The Expensive Car Supplement, otherwise known as the luxury car tax, will now apply to electric vehicles priced over £40,000, ending their eight-year-long exemptions.</p><h3></h3><br/><p>The move was announced by former Chancellor of the Exchequer Jeremy Hunt under the Conservative Government, with the current Chancellor Rachel Reeves confirming it in the Autumn Budget last year.</p><p>Previously, electric vehicles had received certain tax exemptions, but in a bid to level the playing field between all road users, EV owners will now have to pay their fair share.</p><p><em><strong>Do you have a story you'd like to share? Get in touch by emailing</strong></em> <a href="mailto:[email protected]" target="_blank"><em><strong>[email protected]</strong></em></a></p><h3></h3><br/><img alt="Rachel Reeves and car tax sign" class="rm-shortcode" data-rm-shortcode-id="5c6ed63e60dcc514273e8d9dc263b804" data-rm-shortcode-name="rebelmouse-image" id="3cd40" loading="lazy" src="https://www.gbnews.com/media-library/rachel-reeves-and-car-tax-sign.png?id=59771553&width=980"/><h3></h3><br/><div class="embed-latest"></div><p><span style="background-color: initial;">Chris Rosamond, current affairs and features editor at Auto Express, said "</span><span style="background-color: initial;">Levying what is </span><span style="background-color: initial;">basically a</span> tax set on <span style="background-color: initial;">pe</span><span style="background-color: initial;">trol</span> cars eight years ago onto EVs today is unfair, especially when you consider the large sums involved; currently, it is £425 from years two to six, a total of £2,125 over five years.</p><p>"And it is not just new EVs - regardless of the price paid for a used EV, if it was originally bought for more than £40,000 and first registered from April this year, future owners will still be liable for the charge."</p><p>He warned that with the private EV uptake already struggling and cost being one of the main deterrents for potential buyers, "this change risks slowing adoption at a critical time". </p><p>Under the Zero Emission Vehicle mandate, the UK will need to have at least 28 per cent of new car sales come from electric vehicles by this year before moving to 100 per cent in 2035.</p><h3></h3><br/><div class="embed-dontmiss"></div><p><span style="background-color: initial;">Rosamond stated t</span><span style="background-color: initial;">h</span><span style="background-color: initial;">e</span> Government should be supporting drivers in making the swi<span style="background-color: initial;">tch to EVs</span><span style="background-color: initial;">, "</span><span style="background-color: initial;">not </span><span style="background-color: initial;">penalising</span> them" <span style="background-color: initial;">with new taxes, which could risk disrupting the ZEV mandate.</span></p><p>He said more needs to be done to encourage drivers to move to electric vehicles rather than giving them "another reason to hold off from making the shift". </p><p>Data from the group found that currently, just 19 per cent of UK motorists are "very likely" to consider an EV for their next car, with 57 per cent citing cost as the main issue. </p><p>Meanwhile, demand for more EVs has already been "pushed more by manufacturers than pulled by consumers", with drivers remaining hesitant to buy a greener vehicle. </p><h3></h3><br/><div class="embed-mostread"></div><p>"<span style="background-color: initial;">When the policy was first announced, we called for EVs to remain exempt, and our position remains the same – we urge the Government to rethink this policy or risk going backwards in the drive towards electri</span><span style="background-color: initial;">c,"</span> he added.</p><p>The threshold for the Expensive Car Supplement has remained the same since 2017 despite the price of vehicles fluctuating, prompting experts to urgently call on Chancellor Reeves to expand the rate to at least £50,000. </p><p>Paul Holland, managing director for UK/ANZ Fleet at Corpay, shared: "At a time when businesses need cost-effective options to transition to electric vehicles, further price hikes could delay adoption." </p><p>The punishing tax measures have already had an impact on the sector with Vauxhall taking action to lower the price of its electric cars to under £40,000 to help drivers avoid getting hit with additional costs.</p><p><span></span><strong>LATEST DEVELOPMENTS:</strong></p><ul><li><a href="https://www.gbnews.com/lifestyle/cars/police-spend-millions-car-repairs-vandals" target="_blank">Police forced to spend £2.2million on repairs as 'vandals' target emergency vehicles - 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