World May 24, 2026 · 1 min read

Treasury rejected ministers’ plan to cut VAT on public EV charging to 5%

Department for Transport is understood to back reducing levy, which critics have called a ‘pavement tax’Business live – latest updatesGovernment officials considered cutting the VAT charged on electricity used at public EV chargers from 20% to 5% at the last budget, but the Treasury under chancellor...

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The Guardian
by Jasper Jolly
Treasury rejected ministers’ plan to cut VAT on public EV charging to 5%

Department for Transport is understood to back reducing levy, which critics have called a ‘pavement tax’

Government officials considered cutting the VAT charged on electricity used at public EV chargers from 20% to 5% at the last budget, but the Treasury under chancellor Rachel Reeves rejected the proposal amid disagreement between departments.

Officials in the Department for Transport encouraged electric car charge point operators to write to the Treasury explaining how they would respond to a VAT cut, according to three industry sources. The charger companies said that they would pass the tax cut on to consumers.

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This article was originally published by The Guardian and written by Jasper Jolly.

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