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iTrader: (2)

Came across this at work this morning ... things could get worse yet (sorry it's a bit long!).

The House of Commons Environmental Audit Committee publishes a report urging HM Treasury to consider more ambitious reform of Vehicle Excise Duty

Summary
States that there is nothing intrinsically unfair or unusual about setting new Vehicle Excise Duty (VED) rates for cars that have already been purchased; the rebanding of cars registered since 2001 is not retrospective taxation. Suggests that it makes perfect sense to reband existing cars, based on their respective carbon emissions, as this can be a way of influencing buyers of second-hand cars to choose models with lower emissions. Comments that this is enormously important, given that three quarters of all car sales are second-hand.

Provides that there is a lack of hard data about the financial impacts of these changes on lower-income groups. Suggests that HM Treasury (HMT) should publish detailed analysis of such financial impacts to inform future decisions, with particular reference to lower income households, and should urgently examine proposals for a "car scrappage scheme" that would provide payments in return for taking high emissions cars off the road. Inidcates that HMT should also review the impacts of the differentials on disabled people and their carers.

Reports that the new first-year rates of VED—higher than standard rates for high emissions cars, lower rates for low emissions cars—are welcome. Suggests that significant cuts in emissions could be made extremely rapidly if prospective buyers could be persuaded to choose the most efficient models in each class that are already on the market. States, however, that concerns remain that the differentials between VED bands are still not large enough to drive market transformation. Recommends that HMT should publish research on the effects of widening the differentials, ands hould also consider introducing a scheme in which levies on high emission cars are accompanied by subsidies on low emission cars.

Finds that HMT should have taken much greater care to explain the changes to VED in the Budget. Provides that, if the point of green taxes is to change behaviour, they need to be properly publicised, so that people are fully aware of what they are being encouraged to do. Argues that a failure to advertise green tax details to the public, or explain them in a timely manner to Parliament, breeds suspicion about their objectives, increasing the perception of them as revenue raising measures with no environmental purpose.

States that, according to HMT's own projections, these changes to VED will have only limited environmental benefit. Suggests that HMT should examine the case for a more ambitious reform of VED, with particular reference to funding low-carbon and public transport infrastructure. Reports that the Committee will return to this subject in its next inquiry on the Pre-Budget Report, which might provide the opportunity for a more positive presentation of the changes, based on higher carbon savings and bigger tax discounts for low emissions vehicles. Recommends that, complementing the use of VED to shift the market towards more efficient cars, the government should accelerate the development of new vehicle technology, improve public transport, and encourage the growth of car-sharing schemes.

Concludes that HMT must develop a proper communications strategy for its green taxes, to explain the purpose behind them, to increase preparedness to pay, and to intensify the message of behavioural change they are meant to convey. Also suggests that it should look again at hypothecating VED revenues to areas such as public transport, or by matching levies on high emissions vehicles with discounts on low emissions vehicles.

Full report at http://www.publications.parliament.u...ud/907/907.pdf

AndyC_772

iTrader: (2)

It's comments like this that really make my blood boil, because they're so obviously misguided. All the cars on the second hand market already exist. All of them are owned by someone - and, presumably are actually driven by someone.

If I choose a low-emission vehicle, that doesn't mean that a higher-emission car ceases to exist, it just means it's still being used by its original owner instead of me. In practise it means that the original owner ends up taking a bigger hit in depreciation, which doesn't save any CO2 at all, it just hurts the economy.

lunar tick

iTrader: (2)

Well said that man! These retrospective bands have also made higher emission cars much harder to sell on for existing owners. I think there's also the prospect of people with higher emission cars saying "**** it - if I have to pay over £400 a year road tax, I'm going to drive it as much as possible to get my money's worth." Result - more of these cars racking up bigger mileage and higher CO2 emissions

Guv

iTrader: (8)

With VED duty going the way it is all your going to have is the rich motoring around in big motors and average working/middle class people small cars as they won't be able to afford it.
I wonder what the carbon footprint of a lot of rich people are with lots of cars and homes to run, i'm sure a lot more than most of us

The cost of public transport is what needs to be reduced, i was speaking to a client the other day who told me to visit his brother in Cambridge costs him over £120 for a family of four and needs to be booked at least 1 month in advance to get the cheaper tickets, where as if he takes the car it costs about £80 to travel point to point and he doesn't have the hassle of having to travel into central London first with his wife and two kids!!!.

Its not Rocket Science!!!! oooopppps......thats has it own carbon emissions too

subaruturbo_18

theres also a case of, vehicle value. if prices keep dropping the way they do, in 5 years time how many of you would pay £400 a year in tax for an evo FQ400 that cost them 5K?


if people stop buying powerful cars then the price will drop, resulting in petrol heads like us buying them just the way we do now only since the car cost alot less we will be able to afford much higher emitting cars?

STiFreak

iTrader: (4)

Shouldn't at least some of the vast amount of money the government already takes through car and petrol taxes be used for this ... instead of us just having to fork out more money again!! Fecken slimey, good for nothing *******s!

Maybe this is just a cunning plan to allow them to introduce road pricing without all the protests.

As mentioned before ... if I am going to pay £500 plus a year in car tax, you can be damn sure I am going to drive as much as possible to get my monies worth.

bluerigster

iTrader: (9)

Band G taxation is only been forecasted for the next two years, at which point it's going to cost £455 and £950 for new cars. It's only going get worse after 2010 with the goverment trying to make up an ever increasing deficite in their budget. The future of the performance car dosen't look good, even Porsche have annouced a new diesel engine option on SUV models.

Blueblaster

VED will keep going up. Take a peek at the cost in Ireland where they use engine capacity to determine how much you pay:

Motor Tax Ireland / Car Tax Ireland - Irish Car Road Tax Rates and Bands - Find the tax for your car here! - eForecourt.com Ireland

It's easy money for the Government. The more they raise the tax the more environmentally friendly they can say they are being. Just remember to vote in 2 years time!

dunx

iTrader: (3)

But what about those of us who do a lower than average mileage per annum... ?

I do half the average, in a high emission vehicle, so why charge me a fixed high ved, my retaliation will be to SORN it for four months a year.

SOD 'EM !

DunxC

Blueblaster

So for £150 you can't drive your car for 4 months of the year. The only way you can win is to get a more fuel efficient car. They'll get you in the end. They always do.

snOOpy86

iTrader: (1)

no wonder people dont pay car tax, it probably costs them less to be fined IF they get caught.... ****ing countrys gone nuts, im off as soon as i can!

BIG FUD

iTrader: (84)

But if you get caught you have to pay the fine and take a valid tax disc in to them to recover the car so its not cheaper i made this mistake

snOOpy86

iTrader: (1)

i wasnt aware of this hence i said "Probably" but i now know oo and incase anyone wonders my car is taxed.

Wurzel

iTrader: (1)

My road tax here in Germany is based on my emissions, not sure about engine size and it is 146 euros a year, I just taxed my mates 12 year old 1.8 Escort ghia in England for a year and it cost me 180 pounds.

hoskib

iTrader: (1)

" and should urgently examine proposals for a "car scrappage scheme" that would provide payments in return for taking high emissions cars off the road "

sounds good to me, give me £14000 and you can have it to scrap

just smacks of them spitting the dummy out. 'no-one's listening to our bollocks about global warm.......sorry climate change, so let's just tax the cars of the road'

utter, utter ******* trouble is the next lot are going to be worse