A delay to 2030 to coincide with the UK ban on internal combustion engined car sales is recommended by the Association of Fleet Professionals in its response to the government consultation on electronic Vehicle Excise Duty.
The industry body says the planned 2028 introduction would impact heavily on adoption of electric cars and, in its current form, create a wide range of difficulties for fleet managers.
These include clarifying who is responsible for estimating mileage, complex calculations caused by the same vehicle being used by multiple drivers, defining the split between company and private mileage, possible benefit in kind taxation implications, difficulties around verifying mileage, how vehicle leasing companies are expected to recharge eVED, and the disproportionate impact on rural drivers.
Paul Hollick, chair at the AFP, said, “We strongly believe the government should look at ways of delaying and simplifying this proposal while reducing the burden on fleet operators.
“The electric car market is still stabilising and fleets remain negatively affected by residual value issues, Zero Emissions Mandate volumes and charging difficulties. Introducing eVED in 2028 is likely to slow adoption and increase costs. We believe moving its implementation to 2030 better aligns with fleet cycles and avoids destabilising both the new and used markets.
“There are also a wide range of what appear to us largely unnecessary complexities in the current proposals likely to generate huge amounts of administration work. They place a burden on drivers, fleet teams and leasing companies which seems disproportionate.”
The AFP favours a retrospective taxation system or a tax on electricity delivered through charge points rather than the proposed scheme based on predictive mileages.
Paul added, “We very much recognise that electrification is leading to a taxation shortfall for the Treasury that needs to be recovered somehow and also the government would prefer to introduce a system based on use, rather than the flat rate of current BIK.
“However, the proposals seem needlessly convoluted and this is very much the theme of our consultation response. Easier, better solutions appear to be available.”
