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Tories reveal transport tax plans

Date: 13 September 2007

Tory proposals

The Conservative Party has set out its green transport plans which include taxing office parking, introducing a new car purchase tax for high CO2 cars and bringing in a public sector-wide green car buying scheme.

The new report headed by Tory MP John Gummer looks at all aspects of the environment and dedicates a chapter to transport.

The highlights include:

  • Taxing non-residential off-street parking
  • Introducing a purchase tax for new cars running from 0% to 10% depending on CO2 output, linked to variable VAT rate of 5%-17.5% for cleaner cars.
  • Expanded VED bands with a new 300g/km-plus band H with a maximum of £500
  • Grants for new low CO2 technologies
  • Company car tax to continue as now
  • Support the EU 120g/km CO2 limit for car makers by 2012
  • Cigarette-style advertising regulations to make sure car makers give enough space to environmental information
  • Government-wide clean car procurement policy, plus joining with other EU governments to cut fleet buying costs
  • Not in favour of national congestion charge, but yes to local city schemes

Have the Tories got it right? Have your say here.