SMMT response to budget

12 March 2008 #SMMT News

Sales taxes on higher emitting cars have little effect on CO2 emissions and create an unwelcome market distortion. That’s the view of SMMT to news that buyers of new cars with CO2 above 160g/km will have to pay a supplement to VED on first purchase from 2009. For cars emitting more than 255g/km CO2 this rises to £950 (£455 of which is VED)

“Since the introduction of CO2-based road tax in 2001, there has been a clear trend towards lower-CO2 new cars,” said SMMT chief executive Paul Everitt. “Encouraging even more buyers to choose models with class-leading emissions should be the priority. We are therefore pleased to see an increase in the number of bands to 13 from 2009.

“However, introducing what is effectively a sales tax for many new cars is a retrograde step. Trying to force people out of high-value cars has no environmental merit and will be seen as a smokescreen for revenue-raising.”

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