EXCLUSIVE: Government hints at new green tax for vans
22 May 2007
Author: Tristan Young
Van CO2 deadline extended
The Government has given its strongest hint yet that it will use the upcoming official CO2 figures as the basis for a green van tax.
When asked about a new green taxation for vans following BusinessCar's exclusive story, the DVLA's Andrew Cude, writing on instruction from secretary of state for transport Douglas Alexander and officials at the Treasury, told BusinessCar: "The Government will continue to seek to reduce emissions from transport through using tax and other mechanisms, while also taking into account other factors such as impacts on motorists, the wider economy, on social inclusion and road safety."
He also said: "In considering reforms to VED, the Government has to consider the stability of its tax measures, the consistency of its environmental signal, and the costs of delivery - these would include initial implementation costs and ongoing administrative costs. The Government considers all these factors in reviewing the VED duty rates structure as part of the annual Pre-Budget Report and Budget process."
The possibility of linking van taxation, either VED or benefit-in-kind, was raised and backed by industry experts when it was revealed van makers would have to publish official mpg and CO2 figures from next year.
Andrew Cude from the DVLA's Vehicle Policy Group pointed out that current VED rates for LCVs were set until the tax-year 2009-10. This would mean it is highly unlikely of any changes before 2010.