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New car tax rules will ‘discourage’ switch to electric motoring

Electric cars will lose their exemption from vehicle excise duty from April 1.



From April 1, electric vehicles in the UK will no longer be exempt from vehicle excise duty, and EVs costing over £40,000 will be subject to the luxury car tax. Auto Trader warns these changes could discourage drivers from switching to electric cars, as EVs are disproportionately affected by the luxury car tax. The government defends the move as necessary for fiscal stability during the transition to EVs.

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