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Highlights
- FairCharge, a national EV-related campaign, called on the UK treasury to stop the unfair VAT policy levied on EVs when they are charged from public charging points.
- Public charging VAT currently stands at 20 per cent, while domestic electricity VAT used during home charging is at 5 per cent.
A national campaign called on the UK treasury to stop an unfair VAT policy that is levied on electric vehicles (EVs) when they are charged from public charging points.
The awareness campaign, known as FairCharge, is aimed at easing the barriers related to electric car uptake. Currently, EV drivers using public chargers pay around 20 per cent in VAT, while EV drivers with a charging point at their homes pay around 5 per cent as domestic electricity VAT costs.
The body stated that EVs should be affordable and practical for households and organisations facing tough financial conditions. Adding that, in order to boost EV uptake, policies should be fair so that EVs are an attractive choice for all.
In addition to the above, Faricharge also suggested some other actions the government can take in order to boost EVs in the UK. Some of those include ensuring high-speed public charging points across the country offering low-cost funding choices for EVs.
Related Read: Britishvolt gets UK govt funding: 3 FTSE EV focused stocks to buy
Given this development, let us look at 2 FTSE listed stocks that are into the EV charging business and explore their investment prospects:
- Pod Point Group Holdings PLC (LON:PODP)
The main market listed firm, Pod Point Group Holdings, is an EV charging solution focused company. The group reported strong trading performance in H2 bolstered by higher demand for charge points.
The company is expected to release its results for the year ended 31 December 2021, later this month on 18 February. It is expected to be in line with management expectations.
Its revenue, for the 6 months ended on 30 June 2021, was at £26,497 thousand, compared to £11,905 thousand in the year before.
Image source: EODHD/Others
Pod Point Group’s shares closed at GBX 227.60, up by 0.18 per cent on 1 February 2022.
The company has a market cap of £349.78 million as of 1 February. The stock was admitted to the London Stock Exchange (LSE) on 4 November 2021.
- BP PLC (LON: BP)
BP is an oil and gas supermajor that has been aiming to shift away from its fossil fuel operations in recent years.
According to media reports, the company’s fast EV chargers are on the verge of overtaking its petrol pump business in terms of profitability.
BP’s EV business is expected to become profitable (on a margin basis) not earlier than 2025. The company aims to increase its EV charging business to 70,000 charging points by 2030, from its charging point numbers of 11,000 at present.
Image source: EODHD/Others
BP’s shares closed at GBX 393.30, up by 2.74 per cent on 1 February 2022, while the FTSE 100 index ended at 7,535.78, up by 0.96 per cent.
The company has a market cap of £75,303.06 million and has given shareholders a return of 47.25 per cent, as of 1 February.
