Why fleets need to engage on eVED consultation

Fleet engagement with the new government consultation on Electric Vehicle Excise Duty (eVED) is essential to highlight a wide range of potential problems, writes Paul Hollick, chair, Association of Fleet Professionals.

Our members at the Association of Fleet Professionals (AFP) broadly accept the need for the government to recover revenue lost from petrol and diesel fuel duty but there are major concerns about the system being proposed.

At a strategic level, the timing of eVED is highly questionable. Acceptance of electric cars in the fleet and especially retail sectors is growing steadily but is still highly uneven. Adding to costs before EVs become the norm, especially with a new form of taxation, is a very risky move.

Initial public reception to the idea of pence per mile payments has not been positive and there is the possibility that eVED becomes a further, perhaps major, barrier to electric car adoption. The government’s thinking appears to be that this negativity will be offset by continuing the new electric car grant until near the end of the decade but whether that will materialise is questionable. Also, it won’t help demand in the used market, which is perhaps where fleets have the biggest concerns about electrification because of less than expected residual values.

Additionally, there are problems with the eVED scheme as outlined, with estimated mileage paid upfront and adjusted 12 months later following verification. This simply creates a considerable administrative burden and lost work time.

We’re planning on making the views of the AFP heard firmly and it is important individual fleets to do the same. The more information that can be presented as part of the consultation before the March 18 deadline, the better.