The Government has set emissions targets, and reducing the tax on new cars with zero, or very low, emissions should help speed up the transition from older vehicles and encourage investment in low emission vehicles and associated infrastructure.
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VAT charged on new electric and hydrogen vehicles help make them prohibitively expensive for most car owners to make the switch, even for entry-level cars. The lower end of the car market are unlikely to adopt low or zero emission vehicles until resale prices substantially fall.
Removing or vastly reducing VAT should increase the turnover rate of these vehicles, speeding adoption, reducing vehicle emissions and encouraging investment in associated infrastructure