SMMT chief calls for electric cars to be exempt from VAT

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    Topic
  • #130377 Reply
    Brydo
    Participant

    Electric cars should be incentivised as part of the government’s 2030 electrification ambition through the removal of VAT, the boss of industry body the Society of Motor Manufacturers and Traders (SMMT) has said.

    Calling for the 20% discount to be applied, which would roughly double the maximum £3000 subsidy available today for anyone buying a £30,000 car, Mike Hawes said: “We’re being asked to go from about 15% of the market to 100% being electrified in nine years. That’s a speedy transition. An incentive would accelerate that transition.

    “We can see that globally, other markets are putting considerable incentives to drive consumer uptake, and we must do more. Removing VAT is one idea that we have proposed.”

    During the coronavirus pandemic, both France and Germany have introduced substantial incentives for buyers of electric cars, worth up to €9000 (£8000).

    Hawes also highlighted that the industry can only play a part-role in driving the uptake of EVs by building the cars, highlighting that it will ultimately be down to the public as to whether they want to buy them.

    “We need consumers to accept change is happening,” said Hawes. “As an industry we face pressures to hit CO2 targets, and as a nation we have committed to the same.

    “But we need the consumer to take up the technologies we develop in order to realise the changes that are being sought.”

    The only person who got all his work done by Friday was Robinson Crusoe.
    Anything i post over three lines long please assume it is an article lol.

Viewing 18 replies - 1 through 18 (of 18 total)
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  • #130407 Reply
    Wigwam
    Participant

    Well, they would say that, wouldn’t they?

    #130419 Reply
    Martinod

    would be good but I can’t see that happening because the government would loss out in a lot of money

    #130422 Reply
    Wigwam
    Participant

    Another way of looking at it Martinod is that it would be good for people wealthy enough to buy a new car but bad for the poorer people who would have to pay for it through taxation.

    #130428 Reply
    alan1302
    Participant

    Another way of looking at it Martinod is that it would be good for people wealthy enough to buy a new car but bad for the poorer people who would have to pay for it through taxation.

    Or you could look at it another way…the government takes the VAT off…encourages more people to buy them…the car companies are happy as they are increasing sales and they can make more cars…making more cars means they can produce them for less money so they can produce cheaper cars which encourages more people to buy them.

    #130430 Reply
    Wigwam
    Participant

    I don’t know where you live, alan1302, but if I look at the cars parked in the street around here, which their owners depend on from day to day, I reckon plenty are worth well under £5000 and are mostly at least 10 years old.  EV s will never reach that level.

    There is also the issue that depreciation of ICE cars tails off in later years and values level off whereas EV car depreciation increases.

    #130432 Reply
    alan1302
    Participant

    I don’t know where you live, alan1302, but if I look at the cars parked in the street around here, which their owners depend on from day to day, I reckon plenty are worth well under £5000 and are mostly at least 10 years old. EV s will never reach that level. There is also the issue that depreciation of ICE cars tails off in later years and values level off whereas EV car depreciation increases.

    Just a quick look on AutoTrader shows quite a few EV’s under £5,000.  As more and more EV’s are sold the used prices will come down further and further.

    I thought this was about VAT on new cars though so not sure what this has to do with that?

    #130433 Reply
    Wigwam
    Participant

    You brought it up. I pointed out that removing VAT made rich people richer and poor people poorer.

    #130440 Reply
    alan1302
    Participant

    I don’t see what that has to do with the people in your street driving older used cars though?  Surely if they remove VAT from EVs which will encourage more people to buy them then those cars will trickle down to the used market which means more choice and less expensive models are available for people that can’t afford new cars?

    #130445 Reply
    Martinod

    It’s official I’m poor

    #130447 Reply
    Wigwam
    Participant

    Dear me alan1302. Are you saying removing VAT on EVs which will be paid for from everyone’s taxes is a good thing because in 10 years time the people in my street may be able to afford to buy one?

    #130450 Reply
    alan1302
    Participant

    Dear me alan1302. Are you saying removing VAT on EVs which will be paid for from everyone’s taxes is a good thing because in 10 years time the people in my street may be able to afford to buy one?

    Removing VAT would be a good short term measure as it increases sales which in turn increases the number being produced which in turn brings the costs of them down.  There maybe less VAT being collected but it’s good for the economy and what is good for that is good for the UK.  The car dealers can employee more people to sell more car so the government gets more text from the employees – more chargers are needed which is more jobs and more tax to the government.  We need to invest in renewable power – so more jobs and more tax being paid.

    VAT being taken off can have  large long term boost – you need to look at the big picture.

    If there are more jobs about maybe people in your street may be working in one of those industries and benefit from it?

     

     

    #130456 Reply
    Wigwam
    Participant

    I need to look at the big picture?  I’ve avoided muddying the waters by pointing this out until now, alan1302, but global production of EVs is way behind demand and will be for some while.  Stimulating demand where supply is short enables manufacturers to charge higher prices.  The SMMT is there to maximise profits for the motor industry, not benefit the economy.

    #130459 Reply
    Brydo
    Participant

    Where would this, if it happens, place motability. This is one of our “perks” so surely we would need a further 20% drop to keep the status quo, or am i deluded.

    The only person who got all his work done by Friday was Robinson Crusoe.
    Anything i post over three lines long please assume it is an article lol.

    #130461 Reply
    Wigwam
    Participant

    I think that would be filed under “never gonna happen”, as is the original suggestion, of course.

    #130467 Reply
    Oscarmax
    Participant

    It’s official I’m poor

    No, I am considerably poor than you


    In 2005 I suffered a brain injury which has left me with mental and physical disabilities.
    Unfortunately I do get confused and get things wrong, so I apologise in advance.

    #130468 Reply
    Wigwam
    Participant

    Following Sunaks spending review we are all going to be considerably poorer.

    #130472 Reply
    Brydo

    I think that’s a given wigwam unfortunately, although BJ isn’t adverse to borrowing a few £billion so let’s keep our fingers crossed.

    #130473 Reply
    Wigwam
    Participant

    £400bn if you please. Won’t be paid back in my lifetime..

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