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Budget 2012 could damage EV market

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The changes to car tax announced in Wednesday's (March 21st) Budget could impact the electric car market.

Chancellor George Osborne will not be extending the five-year exemption from company car tax for zero and low emission vehicles, meaning this will end in April 2015.

The news comes as a blow to the fleet market, which accounts for the majority of electric car and van sales in the UK, Next Green Car claimed.

Dr Ben Lane, managing editor of the firm, said that removing the company car tax exemption cuts off a key driver of the new market for plug-in electric vehicles.

"While fiscal incentives should be time-limited, 2015 is far too early to expect EVs to compete with much lower priced petrol-hybrids and clean diesels," he said.

"If this goes ahead, the EV market will be killed off before it's even started."

The organisation is calling on the government to review the planned changes to company car tax by extending the exemption to 2020 at the earliest.ADNFCR-2576-ID-801325787-ADNFCR


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