A report issued today (26 October 2009) by the Green Fiscal Commission (GFC) has raised concern for the motor industry and its commitment to reducing road transport emissions.
The report which is based on modelling scenarios looks to ascertain what the tax take could be if the current vehicle tax regime is changed. It looks to push the financial burden onto the biggest polluters in order to achieve government’s pledge to reduce carbon emissions by 2020.
In the motoring sector, the report looks at road transport tax, particularly fuel duty, VED rates and car purchase taxes. It lays out scenarios in which green taxes could be pursued, and included within its modelling suggests a new car purchase tax averaging £300 in 2010, rising by £300 each year to reach £3,300 in 2020, as well as a 10% annual increase in fuel duty and increased VED rates.
Commenting on the report SMMT chief executive Paul Everitt said, “We are concerned that the report looks to raise the price of new vehicles at a time when the economy is in recession and the recovery of the new car market remains fragile. Furthermore, the Green Fiscal Commission did not take the opportunity to discuss low carbon technology and performance with industry. The EU has introduced an extremely demanding CO2 regulation for new cars and as recent performance indicates, the motor industry is reducing average new car CO2 at an increasing rate.”
