Autumn Statement: £1.4bn u-turn on 3% diesel BIK levy removal
25 November 2015
The removal of the 3% diesel levy previously pledged by Government for April 2016 has been postponed until 2021, with chancellor George Osborne blaming delays in changes to the EU emissions tests.
"In light of the slower than expected introduction of more rigorous EU emissions testing, we will delay the removal of the diesel supplement from company cars until 2021," he said, having previous announced that the levy for diesels would be removed for the 2016-17 tax year. The change in policy will raise £1.36bn for the treasury over the next five financial years.
"The government is retaining the diesel supplement in company car tax until 2021, when EU-wide testing procedures will ensure new diesel cars meet air quality standards even under strict real world driving conditions," said the Government document.