VED could go greener
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The government-funded Energy Savings Trust is calling for its benefactor to radically reform Vehicle Excise Duty.
It proposes a new premium tax covering gas-guzzling vehicles to encourage more drivers to opt for more fuel efficient cars.
The EST is recommending the introduction of increased differentials between VED bands, with the greenest band A cars paying no VED or receiving a tax bonus under a 'Feebate' scheme.
The EST says that recent MORI research for the Department for Transport revealed that a differential of up to £150 between the bands would persuade up to 55% of new private car buyers to switch to a lower emission car.
It also advocated the introduction of a top Band G (£900 pa suggested) for vehicles with higher than 210g/Km CO2 emissions, such as large saloons or 4x4s. Almost half the sales now in the top Band F would fall into this new band.
Philip Sellwood, chief executive of the EST, said: 'It's no surprise that the UK still has one of the highest average CO2 figures for new vehicle sales in the EU when our government is offering drivers little or no real incentives to buy more fuel efficient vehicles.
'In fact, the maximum VED differential between the best and worst vehicles is currently just £115. And over a quarter of new cars for sale in the UK fall into the highest band F (185g/km CO2) so there's no financial benefit for drivers who opt for more efficient vehicles over the high-emitting vehicles.
'If the Government is serious about cutting the UK's CO2 emissions then it must make driving efficient cars a more financially beneficial prospect.'
As reported in the May edition of ROADWAY some truck manufacturers have been calling for incentives for the early use of Euro 4 and 5 vehicles in the UK, saying the government is way behind other European states in terms of emissions. So far their calls have fallen on deaf ears.
Delegates at the RHA conference told ROADWAY that many hauliers expected the government to tax the industry into using 'greener trucks' rather than reward it for using them voluntarily.
Whether a 'green tax' would be levied alongside the LRUC and road charging is unknown.
It proposes a new premium tax covering gas-guzzling vehicles to encourage more drivers to opt for more fuel efficient cars.
The EST is recommending the introduction of increased differentials between VED bands, with the greenest band A cars paying no VED or receiving a tax bonus under a 'Feebate' scheme.
The EST says that recent MORI research for the Department for Transport revealed that a differential of up to £150 between the bands would persuade up to 55% of new private car buyers to switch to a lower emission car.
It also advocated the introduction of a top Band G (£900 pa suggested) for vehicles with higher than 210g/Km CO2 emissions, such as large saloons or 4x4s. Almost half the sales now in the top Band F would fall into this new band.
Philip Sellwood, chief executive of the EST, said: 'It's no surprise that the UK still has one of the highest average CO2 figures for new vehicle sales in the EU when our government is offering drivers little or no real incentives to buy more fuel efficient vehicles.
'In fact, the maximum VED differential between the best and worst vehicles is currently just £115. And over a quarter of new cars for sale in the UK fall into the highest band F (185g/km CO2) so there's no financial benefit for drivers who opt for more efficient vehicles over the high-emitting vehicles.
'If the Government is serious about cutting the UK's CO2 emissions then it must make driving efficient cars a more financially beneficial prospect.'
As reported in the May edition of ROADWAY some truck manufacturers have been calling for incentives for the early use of Euro 4 and 5 vehicles in the UK, saying the government is way behind other European states in terms of emissions. So far their calls have fallen on deaf ears.
Delegates at the RHA conference told ROADWAY that many hauliers expected the government to tax the industry into using 'greener trucks' rather than reward it for using them voluntarily.
Whether a 'green tax' would be levied alongside the LRUC and road charging is unknown.
