Kraftfahrzeugsteuer
The project's prospects were boosted by changes in the British government's approach to electric vehicles. In March 1980, it had abolished Vehicle Excise Duty for electric vehicles and by the start of 1983, the Department of Transport was working on legislation that would introduce a new category of vehicle – the "electrically assisted pedal cycle". This had a number of significant advantages from Sinclair's point of view. Such a vehicle would be exempt from insurance and vehicle tax, and the user would not need a driving licence or a helmet, all of which were required for mopeds. The legislation, which was passed in August 1983, was prompted by a lobbying campaign by manufacturers such as Raleigh who wanted to sell electric bicycles.