Tax for ‘gas-guzzling’ vehicles
August 3, 2008
Government plans of increasing car tax for ‘gas-guzzling’ vehicles needs to be bolder for a greater environmental impact, MPs state. The official report of Environmental Audit Committee backs the move as a ‘correct step in the right direction.’
Chairman Tim Yeo stated the benefits to the environment would only be limited, and called for more ambitious and aggressive changes. Three members chose to write a minority report terming the plan ‘a retrospective taxation’ since it put ‘a new tax on old cars.’ They argued it should be put on hold until its overall impact was properly assessed. Official estimates state vehicle excise duty will go up for 43 per cent of vehicles made since 2001 - but will go down for 18 per cent.
The changes will increase the payment bands from seven to 13. The maximum tax for vehicles with the most emissions will be £455 for 2009-10; owners of the least polluting vehicles will pay zero tax.
The report said there were valid concerns over the effect on lower-income households although it stated it was not clear how many would actually be disadvantaged by these changes.
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