FairCharge, a group campaigning for the 20pc VAT rate on public charging points to be cut, said the disparity meant those paying at public points paid £185 a year in VAT, compared to £59 for a motorist with off-street parking.
Transport campaigner Quentin Wilson, who leads the group, said: “If the Government’s stated ambition is mass adoption of EVs, this VAT regime is at best confusing messaging and at worst a policy blunder. It’s certainly a massive disincentive for wider adoption.
“We are calling on the Treasury to equalise the VAT rate at 5pc for all EV charging for both public and home charging. We expect the Chancellor to use his upcoming Spring Statement to make the common-sense and logical change.”
Professor David Bailey of Birmingham University said the VAT disparity penalised those who live in smaller houses and apartments.
Electric car owners also faced a lack of transparency over charging prices, which differ across providers, he added.
“They need much clearer signage and information about what price you’re actually paying. When you go in to pay with petrol, you can see how much it will cost.”
However, Mr Bailey said a lack of available chargers, rather than the cost of charging, was more likely to put people off buying EVs.
“Increasing petrol prices are driving more interest in electric vehicles. And I don’t think the increase in charging prices is putting people off: it’s that the charging network isn’t being built out quickly enough.”
Erik Fairbairn, chief executive of charging company Pod Point, said: “In reality, no operator can absorb what’s happened to the underlying cost of energy. So unsurprisingly, each operator is in the process of either has done or is about to adjust the cost of public charging.”
A Treasury spokesman said: “We are providing over £1.3bn to support electric vehicles through the continued rollout of chargepoints at homes, businesses and on residential streets, and our upcoming EV infrastructure strategy will set out our vision to create a world-leading charging infrastructure network across the UK. We keep all taxes under review.”
