The Chancellor is being urged to support the uptake of electric cars by keeping benefit-in-kind (BIK) tax rates low and by publishing them beyond the 2024/25.

Highlighting the success of the tax regime for electric cars to date, the British Vehicle Rental and Leasing Association (BVRLA) has launched a campaign called #SeeTheBenefit on company car tax.

It comes as the Government announced it was scrapping the plug-in car grant and instead focussing resources on charging infrastructure and electric trucks and vans. 

The campaign is encouraging industry professionals to write to their local MP to educate them on how company car schemes are democratising the move to EVs.

BVRLA Chief Executive, Gerry Keaney said: “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.”

A key part of the campaign is an event for MPs in July, where a selection of industry experts will host a drive-by event outside the Houses of Parliament.

The event will highlight the positive outcomes that will come with more years of tax foresight, keeping BEV BIK rates low, and staggering any increases to avoid a sudden hike.

There, MPs will be asked to pledge their support to the #SeeTheBenefit campaign and encourage the Chancellor to act in the Autumn Budget.

The BVRLA is calling on representatives from across the industry to write to their local MP and encourage them to attend the event next month.

Via a template on the BVRLA website, letters can automatically be created and issued to MPs, sharing the positive results seen by the current low levels of BIK tax and warning of the detrimental impact that raising rates by too much too quickly will have on the UK’s Road to Zero.

“As we weather the cost-of-living crisis, drivers need to know what their tax bills will be,” continued Keaney. “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.”

Full details of the campaign can be found on the BVRLA website. Anybody looking to share the pre-written letter can do so via the online form. Only requiring the individual’s name, email and postcode, a letter can be generated and shared with their local MP in moments.

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