ICFM conference: Tax changes predicted following Volkswagen emissions scandal
18 November 2015
Industry experts are predicting tax changes to try and move fleets away from diesel and into more eco-friendly fuels.
The ICFM conference heard from Mark Chessman, managing director, operations, at FMG, who said revisions can be expected. "If you think about what [the Government] did with diesel, tax was a huge driver of change in what vehicles go onto the roads, and it will be a huge driver of change in the next five years," he said. "My supposition is that the VW scandal will trigger changes in company car taxation, and if it is anything like the impact BIK had on diesel, then it may not be an evolution but a revolution."
He described tax changes on company cars as "the single most effective way of influencing what goes onto British roads", and that the issues surrounding VW will "make regulators think very carefully about what incentives they want to be using".
"It will be a less diesel-centric environment with more easy-to-use technology becoming available and affordable," he concluded.