The UK Government is facing criticism after HM Revenue and Customs confirmed it will appeal a ruling that could have reduced the cost of charging electric vehicles across the country.

The decision follows a tax tribunal ruling last month which found that VAT applied to public electric vehicle chargers should have been set at 5% rather than the current 20%.

If upheld, the ruling could significantly lower charging costs for drivers who rely on public infrastructure rather than home charging.

It has now emerged that HMRC intends to challenge that decision, a move which has sparked political criticism and renewed debate over the cost of switching to electric vehicles.

The SNP has accused the UK Labour Government of continuing to place an unfair burden on electric vehicle drivers by attempting to maintain the higher rate.

The party argues that the appeal risks undermining progress towards cleaner transport at a time when drivers are already facing rising costs.

Kaukab Stewart, SNP candidate for Glasgow Southside, said:

“Scotland has led the way in the provision of public electric vehicle (EV) charging points in the UK, thanks to investment by the SNP in government.

“But the progress made in switching to this cleaner, greener way of travel is under threat from a UK Labour Government which is once again treating energy as a cash cow while they rip off motorists.

“This decision to challenge the court ruling which found that motorists who have made the switch to greener driving are being ripped off is just the latest example of Labour putting people off making the switch to cleaner motoring.

“It follows hot on the heels of the Chancellor’s decision to introduce a new tax per mile for electric vehicle drivers which will hammer motorists in rural Scotland the hardest.

“With petrol prices soaring at the pumps while Keir Starmer’s incompetent government does absolutely nothing to help, we should be encouraging people to make the switch to electric vehicles rather than hammering them.

“This is just the latest example of a UK Government treating our energy as a cash cow to fleece the public and is exactly why Scotland needs a fresh start with independence so that we can use our vast clean energy resources to work for Scotland. That’s what John Swinney and the SNP are offering voters on May 7th.”

The tribunal ruling has brought wider attention to the difference in VAT treatment between public and domestic charging.

Drivers who charge their vehicles at home typically pay the lower 5% rate, while those using public chargers face the full 20% rate.

Critics argue that this creates an uneven system which disproportionately affects those without access to private charging, including many living in flats or urban areas.

The issue has become increasingly prominent as electric vehicle adoption continues to grow across the UK.

Concerns have also been raised that higher charging costs could slow progress towards climate targets by discouraging drivers from making the switch.

The outcome of HMRC’s appeal is expected to be closely watched by both motorists and the wider energy and transport sectors.

With pressure mounting over the cost of living and energy, the debate over electric vehicle charging costs is likely to remain firmly in focus.