UK Government Extends Plug-in Taxi Grant to April 2025, Celebrating Success in Zero-Emission Taxi Adoption

The UK government has announced the extension of the Plug-in Taxi Grant until April 2025, marking a significant milestone in the nation’s commitment to sustainable transportation. Launched in 2017, the Plug-in Taxi Grant has played a pivotal role in fostering the adoption of zero-emission taxi cabs across the country.

Since its inception, the Plug-in Taxi Grant has allocated over £50 million to support the purchase of more than 9,000 zero-emission taxi cabs, with over 54% of licensed taxis in London now being electric, showcasing the program’s widespread success.

The Plug-in Taxi Grant (PiTG) serves as an incentive scheme aimed at bolstering the uptake of purpose-built Ultra-Low Emission Vehicles (ULEV) taxis, thereby reducing carbon emissions and advancing environmental sustainability.

Key features of the PiTG scheme include:

Financial Incentives: The PiTG offers discounts of up to £7,500 or £3,000 on eligible taxis, depending on factors such as vehicle range, emissions, and design. Notably, the scheme prioritizes wheelchair-accessible vehicles.

Categorization Criteria: Taxis eligible for the grant are categorized into two groups based on their carbon emissions and zero-emission range:

• Category 1 PiTG (up to £7,500): Vehicles with a zero-emission range of 70 miles or more and emissions of less than 50gCO2/km.
• Category 2 PiTG (up to £3,000): Vehicles with a zero-emission range of 10 to 69 miles and emissions of less than 50gCO2/km.

Accessibility: All taxi drivers and businesses investing in new purpose-built taxis can benefit from the grant if their vehicles meet the eligibility criteria.

Despite the success of the PiTG in promoting the adoption of electric taxis, challenges persist, particularly concerning the accessibility of rapid EV charging infrastructure, especially in city centers.

As of January 2024, there were a total of 55,301 EV charging points in the UK, spread across 31,445 locations, a significant 46% increase since January 2023, according to Zapmap data. However, these figures do not include the large number of charging points installed in homes or workplaces, which are estimated to be over 700,000 units.

Regarding VAT liability, electric vehicle charging through public charging points is subject to the standard rate of VAT, with no exemptions or reliefs currently in place.

The government acknowledges that high energy costs and limited access to off-street charge points contribute to the ongoing challenges faced by EV drivers.

The extension of the Plug-in Taxi Grant underscores the government’s commitment to fostering sustainable transportation solutions while addressing the evolving needs of taxi drivers and promoting environmental stewardship.