Electric vehicle drivers without off-street parking are being hit by a collective £172m annual VAT penalty that completely dwarfs the Government’s upcoming tax cuts, fresh data reveals. Drivers with a dedicated charger on a standard tariff save the most, £27 a year, yet still pay £62 in public charging VAT. The findings have intensified pressure on the Government to equalise VAT rates across all EV charging types. If the domestic VAT cut returns to 5% as scheduled, New Automotive estimates that aligning public charging VAT to match would cost the Treasury £120m in lost revenue. Factoring in the £40m raised from domestic EV charging, the policy change leaves a net gap of just £80m – offering the Government a straightforward, highly fundable fix.