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ACFO calls for lower BIK band restructuring

Date: 04 November 2016   |   Author: Daniel Puddicombe

The Association of Car Fleet Operators has called on the Government to reveal company car benefit-in-kind tax bands for ultra-low emission vehicles until 2028/29.

According to ACFO, if the Government is able to do this, it would enable fleets to plan further in advance.e, while recognising vehicle lifecycles and the availability of products.

At present, the Government has released BIK bandings up to 2019/20.

The fleet body has called on the Government to recognise the wide range of vehicles and fuel options that are on sale by creating a number of narrower bands rather than what it is calling today's "cliff-edge" approach.

At present, just three bands cover ultra-low emission vehicles.

ACFO is also asking the Government to consider including other emissions, such as the amount of NOx cars emit, and not just CO2 figures, in order to help improve air quality.

"The breadth of product in the lowest-emission tax bands has historically been limited and, whilst improving, a firm incentive-based long-term tax plan is required to ensure vehicle manufacturers produce ULEVs across a wide range of new car sectors and thus demand rises," said ACFO deputy chairman Caroline Sandall. "Long-term planning is essential to motor manufacturers and fleets and it is only fair to company car drivers that they select vehicles in the full knowledge of what their tax bills will be for the full lifecycle of a vehicle."

"Currently, tax levels are known for four years, but ACFO believes that is not long enough, which is why we have called for eight years," she added.