THE BVRLA is calling on the Chancellor of the Exchequer to support the uptake of electric cars by keeping Benefit in Kind (BIK) rates low beyond the current 2024/25 published figures.
Pointing to the success of the current tax system for electric cars, the #SeeTheBenefit campaign is encouraging industry professionals to write to their local MP to educate them on how company car schemes are boosting electric cars and easing the move to EVs.
The strides we have made as an industry to phase-out petrol and diesel cars before 2030 are clear, nearly 60% of electric vehicles on UK roads are company registered. Order banks are currently healthy, with 80% of salary sacrifice orders being for battery electric vehicles as their low tax rates appeal to drivers.
The uncertainty caused by the lack of foresight beyond 2024/25, or by seeing a sudden jump in rates, will cause the growth of EVs to stall. This needs to be addressed by the Chancellor in the budget this autumn.Garry Keaney, BVRLA chief executive
A crucial part of the campaign is scheduled for July, where a selection of industry experts will host a drive-by event outside the Houses of Parliament. It is intended to showcase the positives that come with greater foresight in tax rates.
The BVRLA has created a template on its website so that letters can automatically be created and sent to MPs, highlighting the positive results seen from the current low levels of BIK and warning of the impacts raising rates too high and too quickly could bring. Garry continued:
As we weather the cost-of-living crisis, drivers need to know what their tax bills will be. The Government needs to keep up the fragile momentum it has created in the face of the current economic headwinds, now is not the time to accelerate tax rises.
The more industry professionals that write to their MP on this matter, the better. Each letter sent gives the campaign more momentum, educates more MPs, and makes our voice louder with those that will ultimately determine future rates.
Those wishing to send a letter using the template or find out more about the campaign can visit the BVRLA website.