Electric car drivers are to be hit by a "Tesla tax" of up to £520 a year in a move it was claimed will threaten the shift away from petrol and diesel.
Jeremy Hunt, the Chancellor, is to charge excise duty on the vehicles for the first time as more drivers go electric and the Treasury’s ability to tax drivers is undermined.
New electric cars registered from April 2025 will pay the lowest rate for the first year, currently £10, and will in their second year move to the standard rate, which today is £165. Older electric cars will also pay this standard rate.