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Drivers punished for going green
The divine law of unintended consequences in action.Motorists face having to pay increased road tax as the Treasury considers plans to claw back hundreds of millions of pounds in revenue that will be lost as drivers opt for greener cars. The electric company and water works will employ the same philosophy... The talks come as ministers try to prevent a fall in tax revenues as more motorists choose smaller, cleaner cars that incur a lower rate of duty. Labour has accused the Coalition of planning a "stealth tax" on drivers, effectively punishing them for going green. Ministers say that while they have not finalised their plans, changes may be necessary to ensure the "sustainability of the public finances". One option being considered would replace the annual tax on cars with a one-off up-front charge on new vehicles when they are sold. Chloe Smith, a Treasury minister, told the Commons last week that ministers are "considering whether Vehicle Excise Duty should be reformed to support the sustainability of public finances and to reflect the improvements in vehicle fuel efficiency". As part of that process, motoring groups and other interested parties have been invited into the Treasury to discuss potential changes to VED. Posted by: tipper 2012-05-31 |
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