Ditch outdated diesel BIK penalty says BVRLA

9 February, 2010

The British Vehicle Rental and Leasing Association is to lobby the Government to dump the “out-of-date” 3% diesel benefit-in-kind surcharge.

BVRLA chief executive John Lewis said that the leasing sector could intensify its ever-improving environmental performance if the Government would abolish or reduce the 3% diesel BIK supplement, an issue his organisation will raise at imminent pre-Budget meetings with the Treasury.

He said: “The Government’s emissions-based tax regime has given fleets and their drivers a great incentive to drive cleaner cars and the message is clearly getting through. But removal of the historically out-of-date pollution-related diesel BIK penalty would accelerate that process and perpetuate that virtuous circle.”

Car leasing firms are taking an increasingly green route with the cars they operate, and eclipsed the general UK new car buying trend by reducing average new car CO2 emissions to 144g/km last year.

BVRLA members, which run fleets totalling around 1.6 million cars, generated a 4% reduction in CO2 output compared to 2008 and 9% against 2007 levels. Last year’s figures released by the Society of Motor Manufacturers and Traders registered an overall cut in average new car emissions to 149.5g/km.

Lewis said the association’s leasing members continued to lead the way in lowering road vehicle emissions and disproved “the myth that company cars are gas guzzlers”.

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