The Association of Fleet Professionals has called on the Government to extend the company car benefit-in-kind tax tables out by five years to 2030 if it is to bring forward the ban on sales of petrol and diesel models by ten years from 2040.
Speculation is mounting that the Government could make an announcement during November to pull forward its current plans on environmental grounds, and the AFP has called for “a high level of co-operation from Government to get there”.
“We would like the government to start thinking about and we are going to do a little bit lobbying over the next year or so on this subject,” AFP chair Paul Hollick told Company Car Today. “As fleet operators are only a cycle, a cycle and a half away from those tables, and we really need to know what the plan is in the second half of the decade because we need to prepare for it now.”
“From a practical standpoint, this will mean that we can produce comprehensive EV adoption strategies that take us right through to the moment when petrol and diesel cars will no longer be available, tackling financial and operation concerns,” Hollick continued, also calling for greater transparency on the future of incentives and grants for EV adoption.
“At present, the grants that are used to discount prices of new EVs are very much part of the calculations that make them affordable to businesses,” he said. “It is probably inevitable that they will be reduced over time but if they are suddenly withdrawn or substantially reduced at some point in the future, it does make the maths difficult.” AFP’s chair also stated the need for more detailed plans around ensuring the public charging network grows in line with the technology, especially for those without the ability to charge at home once petrol and diesel cars are no longer on sale.
“With road tolling, the reduction in tax take for the chancellor on fuel duty needs to be replaced somewhere, so let’s just get real and get on into that as well,” Hollick concluded. “Because if we want to get to this roadmap of zero carbon EVs on the roads in 2030 particularly for all new deliveries, we need to know what’s happening with those tax tables from 25/26 onwards. And I think actually the challenge there is there needs to really be a fundamental reshape of what benefit in kind tax looks like in the second half of the decade.”