As the closing date looms on government’s consultation Review of WLTP and vehicle taxes, the BVRLA and other leading trade bodies are making a collective call to industry to take action.
Concerned that government’s continued lack of alignment of its taxation and environmental policies will result in a failure to remedy the current vehicle tax regime, the BVRLA is urging industry colleagues to respond to the consultation which closes on 17 February.
In its response the BVRLA is calling upon government to:
- Adjust future VED and company car tax bands for 2020 and beyond to account for the increase in WLTP-based CO₂ figures
- Provide a legacy CCT table for pre-April 2020 vehicles, freezing the rates at 2018/19 level
- Provide a 4/5-year view of future company car tax and VED bands, enabling fleets and drivers to plan their vehicle choices
- Ensure that all CO₂-related taxes and charges (e.g. congestion zones, lease rental restriction) are treated consistently under WLTP
BVRLA Chief Executive Gerry Keaney said: “We continue to work with Treasury to make clear the negative impact of the current vehicle tax system and we are urging others to do the same by sharing any evidence of detriment with us for inclusion in our consultation response.
“With the current tax regime incentivising drivers to opt-out of company car schemes and take cash allowances, there is a real and present danger that without a change in gear on tax, we will see the demise of the company car and a missed opportunity to put cleaner vehicles on the road.
“WLTP is designed to offer motorists greater transparency. It should not be seen as an opportunity for the Chancellor to boost the Treasury coffers. Without making the necessary WLTP-related vehicle tax adjustments, the Chancellor will be simply abusing his position by opportunistically raising taxes and punishing hard pressed families and businesses.”
When government published its ‘Road to Zero’ strategy in 2018, it emphasised the need for the transition to zero-emission vehicles to be industry-led. The BVRLA and its members responded by launching the BVRLA Plug-in Pledge, outlining ambitions to see its members’ combined plug-in vehicle fleet size surge from 50,000 today to 720,000 by 2025.
Keaney continued: “With over 5 million vehicles on fleet, our members have demonstrated their commitment and capability to drive the ‘Road to Zero’ but we now need government to play its part by creating a vehicle tax regime that is fit-for-purpose. That should start by making the right tax adjustments to support a smooth transition to WLTP and adjusting the tax regime to incentivise the uptake of company cars.”