The Government’s plans to decarbonise road transport will be seriously threatened if it does not introduce a fair and consistent company car tax regime, the BVRLA has warned.
Responding to the Treasury’s WLTP consultation, the said that recent hikes in company car taxes combined with WLTP-related uncertainty and a lack of visibility on future rates beyond 2021 had already led to more employers and employees opting out of the market.
It added that as a result, some staff members may end up driving a more polluting personal lease or grey fleet vehicle, meaning that as a result, some of the fleet industry’s progress to reduce vehicle emissions is being reversed. “If the Government fails to manage the impact of WLTP-based company car tax this trend will only accelerate,” it warned.
In its response to the consultation the BVRLA called for the 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 company car tax table for pre-April 2020 vehicles, freezing the rates at 2018/19 level
- Provide a four-five 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 (such as congestion zones, lease rental restriction) are treated consistently under WLTP
“Our members buy nearly 1.6 million cars each year and are responsible for most ultra-low emission vehicle registrations,” said BVRLA chief executive, Gerry Keaney. “Most policymakers recognise the vital part that these fleets will play in delivering the government’s flagship Road to Zero and Industrial Strategy. We need HM Treasury to acknowledge and support the fleet sector’s role by providing a fair, consistent and well-signposted tax regime.”
He added: “WLTP is designed to offer motorists greater transparency. It should not be used as an excuse to boost 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 already hard-pressed families and businesses.”