Have I missed some sarcasm or have you missed the point that's trying to be made?
There's a whole range of human activity that produce CO2 from computers to kettles, fridges to patio heaters, yet the car is the only one that's consistently singled out for "green" taxes.
Budget 2008 announces reform of the vehicle excise duty (VED) structure. From 2009, VED will be restructured with new bands, based on carbon dioxide so that people gain financially by choosing the car with the best environmental performance in a given group. The financial difference between the most and least polluting cars will increase, so that making a small change in car emissions has a greater financial impact. From 2010, there will be a new higher first-year rate based on carbon dioxide emissions, to influence purchasing choices. Specific changes include:
- six new VED bands from 2009-10 – including a new top band (band M) for the most polluting cars that emit more than 255g CO2 per km;
- reducing the standard rate of VED, in 2009-10, for all new and existing cars that emit 150g of CO2 per km or less, and increasing the standard rate of VED on the most polluting cars to £425;
- from 2010-11, extending the zero rate of VED, during the first year of ownership, to all new cars that emit 130g CO2 per km or less – the EU proposed target for average new car emissions in 2012;
- holding the first-year rate for all new cars that emit between 131 and 160g CO2 per km equal to the standard rate in 2010-11;
- introducing for the most polluting cars a first-year rate of £950 in 2010-11;
- and providing a £15 or £20 discount for alternatively fuelled cars in 2009-10, and £10 in 2010-11; and aligning the alternative fuel and standard rates of VED in 2011.
Any info to what the new bands will take into account? Will Band M be 225 and over, or for higher vehicles?
From page 122.
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I like this. The Fabia gets cleaper - anything worse gets more expensive!![]()
I do like the "first year scaling" thing - the first year is when you make the decision what car to buy. This scaling factor increasing the effect of this mechanism.
I do like the "first year scaling" thing - the first year is when you make the decision what car to buy. This scaling factor increasing the effect of this mechanism.
VED influences vehicle choice - the new scheme will make the UK fleet more efficient that it would otherwise be - meaning the same economic activity (moving people/stuff around) can be done with less oil. Fundamentally, absolutely, unequivocally a good thing given we are an oil importer, run a trade deficit and are competing on the oil export market with countries running a trade surplus.
For all those with low tax group cars....
If people eventually are put off buying big engined cars due to the high tax on them, the amount of revenue generated by the tax will decrease and he'll have to get it from somewhere else.