Petrol and diesel drivers could be 'pressured' to 'ditch' cars after rule change

Car tax changes are needed to pressure petrol and diesel drivers to switch to electric as the AA calls for new rules. The AA is now arguing that electric vehicles should have lower tax thresholds than petrol and diesel cars to help incentivise drivers to make the switch.

The AA explained: “Drivers will need to be supported with the right incentives, and reassured that we’ve made significant progress on infrastructure, to make the shift possible.” Vehicle Excise Duty (VED) or car tax must be paid each year if you own a car, van or motorhome.

Vehicle Excise Duty is linked directly to your car, van or motorhome and the cost varies depending on vehicle age, list price and CO2 emissions. The different rates are known as car tax bands, road tax bands or VED bands.

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It added: "The AA has been supporting drivers for over a hundred years and today represents more than 14 million members in the UK. Our research shows that many of those drivers are confused and concerned across a range of issues – unsure about how and when to make the shift to electric vehicles (EVs) and worried about the state of our roads and infrastructure, as well as the affordability and safety of driving overall."

In its new Motoring Manifesto, it went on: "Rates should only increase in line withinflation and whilst we accept introductionof VED for EVs after 2025, we believe the EV rates should remain lower than for Internal Combusion Engine (ICE) vehicles to act as an incentive."

The AA wants to reduce VAT for on-street charging from 20 per cent to match VAT for home charging at five per cent. It also wants to bring in zero per cent loans on used EVs (as in Scotland), as well as unveiling scrappage schemes to help drivers earn money for moving to electric.