Call to axe VAT on electric cars

The Government has been urged to suspend Value Added Tax (VAT) on electric cars, so that more people are encouraged to buy eco-friendly vehicles.

According the RAC and TV presenter Quentin Willson, the move would also help to boost the UK's green automotive industry.

Speaking at the "Drive the Future" motor show at Motorexpo in London's Canary Wharf, the motoring expert said: "While the Government gives £5,000 grants for electric vehicles they're still far too expensive.

"We need to create demand among consumers and confidence for investors. The UK must lead the World in green car technology before the Chinese beat us to it."

He explained the suspension of VAT on sales of electric vehicles would cut showroom prices by as much as £5,000.

Just 500 electric vehicles have been sold in the country so far in 2011, so Willson said the Government should do more to drive demand for such models as well as bolster the growth of the industry.

Adrian Tink, strategist at the RAC, said: "This is about making green cars more affordable, creating jobs, cleaning our air and giving drivers' confidence to make more fuel-efficient car-buying choices."

Copyright © Press Association 2011