Electric Cars To Pay Road Tax In The UK From 2025

The UK is likely to implement road taxes on electric cars beginning in 2025, according to Chancellor of the Exchequer Jeremy Hunt, removing an exemption intended to encourage the use of zero-emission vehicles.

EVs will no longer be exempt from car excise duty, Hunt announced at the Autumn Statement on Thursday, as part of a package of tax increases and spending cuts aimed at plugging a £55 billion ($65 billion) shortfall in Britain's public budget.

The chancellor stated that EVs will continue to enjoy lower company car tax rates, and that the government will limit rate rises to one percentage point per year for the next three years beginning in 2025.

The United Kingdom intends to phase out the sale of new automobiles powered solely by gasoline and diesel engines by 2030, and automakers have long sought incentives to encourage the adoption of electric vehicles. The elimination of the road tax exemption follows a reduction

The restrictions unveiled on Thursday will "unduly penalise" newer, more expensive vehicle technologies, according to the Society of Motor Manufacturers and Traders.