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Industry expects CO2 tax for commercial vehicles

Date: 02 May 2007

Business van industry bosses have backed predictions that the introduction of official mpg and CO2 figures for LCVs will lead to a tax system based on these figures.

As exclusively revealed by BusinessCar, new European regulations mean that from 1 January 2008 all LCV makers will have to publish official mpg and CO2 figures, which could lead to a new way of taxing vans.

Talking to industry bosses at the CV Show, all thought a van tax system based on CO2 was a distinct possibility.

Most outspoken on the matter was Vauxhall boss Bill Parfitt's assessment: "Your story's hit the point. They've [the authorities] gone off half-cocked again.

"We're not worried about it because our engines are good. Whatever the rules, we're likely to be better than the average."

Ford CV boss Steve Kimber said: "I can see the possibility of a CO2 based van tax system and certainly having the figures leads down that avenue."

Nissan's CV sales and marketing boss Mark Lovett added: "From the Government point of view, it's probably their end goal."