RAC and Willson urge Government to scrap VAT on electric cars

The Government is being asked to suspend VAT on electric vehicles in an effort to increase demand and therefore stimulate sales of vehicles and aid investment in green motoring. The request has been highlighted by Quentin Willson, formerly of Top Gear and more recently one of the leaders of the Fair Fuel UK campaign, and the RAC.

Mr Willson, in attendance of his Drive the Future Show, located at the 2011 Canary Wharf London Motorexpo this week, said: ‘While the Government gives £5,000 grants for electric vehicles they're still far too expensive. Clawing back thousands of pounds of that grant in VAT isn’t helping. We need to create demand among consumers and confidence for investors.’

Adrian Tink of the RAC added: ‘This is about making green cars more affordable, creating jobs, cleaning our air and giving drivers' confidence to make more fuel-efficient car-buying choices.’

Coupled with the grant, suspension of VAT charges would give potential savings of up to around £10,000 which would bring purchasing costs more in line with vehicles a lot more commonplace in the market.

The Drive the Future show gives visitors the opportunity to drive and ride in a variety of vehicles at no charge. These include environmentally-friendly cars, Electric Vehicles (EVs) and hybrids. Vehicles on display include the Nissan Leaf, the VW Polo BlueMotion and the new Vauxhall Ampera.

For more information on the London Motorexpo, which runs until June 12th, please click here.