AA questions Government’s vehicle duty changes | Smart Highways Magazine: Industry News

AA questions Government’s vehicle duty changes

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The AA has added its voice to groups warning that the Chancellor’s changes to Vehicle Excise Duty will lead to an increase in the number of higher-emission vehicles on the roads.

In his Budget, Chancellor George Osborne announced that the nil Vehicle Excise Duty (VED) band for clean petrol cars would be restricted in future to electric vehicles.

This removes a tax break for clean petrol cars and hybrids, which will from 2017 attract the same Excise Duty as “gas guzzlers”.

The AA’s survey of motorists suggests they will be more likely to buy polluting cars following a Budget change, with 59 per cent of drivers thinking the change penalises low-CO2 cars.

The AA president Edmund King told BBC News: “If the government is serious about trying to get motorists to drive cleaner greener cars, this is really counter-productive.

“Drivers will not be given the same incentive to go for cleaner (petrol or hybrid) cars so there won’t be the same pressure on manufacturers to produce those cleaner models. We seem to be getting rid of an incentive that worked very well.”

 
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