17 August 2018

Petition launched to introduce 'low' electric vehicle BiK tax 12 months early

A petition calling for the 2% benefit-in-kind company car tax rate for electric vehicles to be implemented 12 months earlier than planned has secured more than 1,000 signatures of support within its first couple of weeks.

The petition, which has been set up by a member of the public, mirrors the calls made by the British Vehicle Rental and Leasing Association (BVRLA) last month at the organisation's Summer Parliamentary Reception, where it launched its 'Plug-in Pledge' and asked parliamentarians to call upon the government to support the greater uptake in electric and hybrid vehicles through measures such as bringing forward plug-in company car tax incentives now and not in 2020.

The BVRLA said it would continue to campaign for the change through its work leading up to the Chancellor's Budget statement this autumn.

The government's current plans would see the benefit-in-kind tax rate for electric company cars - 13% in 2018/19 - soar to 16% in April 2019 before dropping to 2% in 2020/21, actively disincentivising the take-up of electric vehicles as company cars and contradicting the ambitions set out in the government's 'Road to Zero Strategy' published last month, according to the BVRLA.

If the petition, which wants the 2% rate introduced from April 2019, reaches 10,000 signatures the government will issue a public, written response and if it reaches 100,000 it will be considered for a debate in Parliament.

Any member of the UK public can sign the petition on the parliament.uk website. The closing date for signatures is 31 January, 2019. The petition can be accessed by clicking here.