Current status: Answered by Fiona Hyslop on 3 June 2025
To ask the Scottish Government what discussions it has had with the UK Government regarding reducing the VAT rate that public electric vehicle chargers are subject to, in light of reports that this is one of the reasons why charging on rapid chargers can cost over 75p per kWh.
The current VAT rate for public electric vehicle (EV) charging stands at 20% versus 5% for a domestic energy supply. A higher VAT rate is one of the reasons why charging via a rapid charger can cost over 75p per kWh. This can be a barrier to switching to an EV, particularly where drivers do not have access to home charging.
The Scottish Government believes that motoring tax policy needs reformed as the sector decarbonises and can complement wider transport policies and net zero objectives. The Cabinet Secretary for Finance and Local Government wrote to the Chancellor of the Exchequer in October last year ahead of the UK Budget requesting a constructive discussion on motoring tax reform on a four-nation basis, and I have also raised my concerns in this area at various Inter-Ministerial meetings since.
However, there has been no response to our requests for collaborative discussions on motoring tax reform and the Chancellor has so far resisted calls to reduce the rate of VAT for public EV charging.
I, along with the Cabinet Secretary for Finance and Local Government, will continue to call for a review of motoring taxation policy on a four-nation basis with Westminster so that it is fit for purpose in the evolving transport sector and aligns with our climate change targets.