91³ÉÈË

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91³ÉÈË response to budget

12 Mar 2008

Sales taxes on higher emitting cars have little effect on CO2 emissions and create an unwelcome market distortion. That’s the view of 91³ÉÈË to news that buyers of new cars with CO2 above 160g/km will have to pay a supplement to VED on first purchase from 2009. For cars emitting more than 255g/km CO2 this rises to £950 (£455 of which is VED)

“Since the introduction of CO2-based road tax in 2001, there has been a clear trend towards lower-CO2 new cars,” said 91³ÉÈË chief executive Paul Everitt. “Encouraging even more buyers to choose models with class-leading emissions should be the priority. We are therefore pleased to see an increase in the number of bands to 13 from 2009.

“However, introducing what is effectively a sales tax for many new cars is a retrograde step. Trying to force people out of high-value cars has no environmental merit and will be seen as a smokescreen for revenue-raising.”

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