Electric cars will be exempt from company car tax for five years from April; all electric vans will be spared a flat-rate £3,000 tax.
Electric cars will be exempt from company car tax for five years from April; all electric vans will be spared a flat-rate £3,000 tax. At present there are a mere 50 electric company cars on the British roads. They pay 9 per cent of standard company car tax. The average company car tax is £350 so the total cost to the Exchequer of implementing this measure will be £1,575. But Treasury officials hope that the announcement will act as an incentive to increase the number of electric cars.Experts believe that these new measures will have a limited immediate impact. They see them as incentives designed to encourage greater green motoring in the years ahead. More money will also be made available for the road testing of electric cars. The Government hopes that the scheme will help to overcome a shortage of electric car charging points. Edmund King the president of the AA said “Obviously in the short term there will be very few takers for this, however, you need incentives and at least this has a decent time scale on it.”