The government has introduced new taxes on electric vehicles to plug a hole in the country’s finances.
Jeremy Hunt confirmed that green cars will no longer be exempt from paying road tax.
The Chancellor confirmed the shock when he announced £55bn in spending cuts and tax increases.
Electric vehicles are no longer exempt from motor vehicle tax from April
2025 to make the motor vehicle tax system ‘fairer’, Mr Hunt has said.
The decision is likely to be strongly criticized by motorists who have made a significant financial investment to buy a modern electric car.
Tax credits for green cars were designed to boost usage at a time when prices remain high.
It remains to be seen how the change will affect the burgeoning industry and whether it will deter people from making the switch.
A Treasury statement on the change read: “The shift to Electric vehicles continue as the UK moves towards net zero.
‘That is why road tax will be introduced for EVs from 2025, so that all motorists will pay a fair share.
‘Charging infrastructure support will continue.’
Mr Hunt also said he would raise a windfall tax for oil and gas companies to 35% from the current rate of 25%.
The government will also apply to electricity generators, with a 45% levy being applied from 1 January.
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