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Liberal Democrats back VED tax changes
Date: 17 October 2012 | Author: Rachel Burgess
Firms with fleet vehicles emitting more than 94g/km could be paying more for Vehicle Excise Duty tax, following suggestions from a Government think tank, backed by the Liberal Democrats.
CentreForum is urging road tax changes that would see a charge of £50 for each gramme of carbon dioxide over 94g/km. The system would be a one-off charge and replace the current annual VED model.
Vehicles emitting 94g/km or less would also receive a Government subsidy of £750 on the new car price.
The price of a 1.25-litre petrol Ford Fiesta would rise from £9084 to £10,734 under the scheme, while the 1.6-litre diesel Fiesta would see its price fall from £11,845 to £11,495.
But larger cars that produce higher emissions would be hit, with owners of the highest-emitting Aston Martin One-77 paying a charge of £23,050 on top of the list price.
The scheme, which could cut total UK emissions by 2.5%, "gives every manufacturer an incentive to make every car more economical," according to CentreForum.
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