BEAMA welcomes the opportunity to respond to this consultation on the introduction of electric vehicle excise duty (eVED). We value the engagement shown by HMT to date with industry on this consultation but note that the timelines for implementation are not sufficient to make the relevant changes necessary to ensure this policy is a success.
In addition, it makes difficult the Government’s own ZEV Mandate, and it is for that reason we urge HMT to introduce eVED in 2030.
This will demonstrate that the consultation process has been a success and that consistent feedback across industry around implementation concerns have been taken on board that would not have necessarily been known by HMT prior to consultation.
Our response reflects the perspective of manufacturers across the EV charging sector.
BEAMA Response Summary:
- BEAMA does not support the introduction of eVED in 2028.
- To align with the ZEV Mandate and mitigate an unknown impact on EV sales (internationally a disaster in the first year after implementation) eVED should commence in 2030 where no petrol or diesel cars will be sold.
- This protects vehicle manufacturers from being fined for not hitting ZEV Mandate targets when Government’s own tax policies makes the argument for adoption less attractive.
- Any loss from eVED revenue in years 1 and 2 can be gained back through increases in fuel duty that the Government have committed too.
- Revenue from fuel duty and or eVED should be used on charging infrastructure and grid upgrades and flexibility rewards to incentivise consumers to make the most of flexibility offerings by their chosen flexibility service provider or energy supplier.
BEAMA members can view our full consultation response below.
