The BVRLA has welcomed the government’s decision to conduct an urgent review into the impact of WLTP on Vehicle Excise Duty and company car tax, but has expressed bemusement at the Chancellor’s failure to use the Budget to bring forward the 2% company car tax rate to stimulate demand for EVs.
BVRLA Chief Executive Gerry Keaney said: “It is great to hear that the Treasury is making plans to remedy any potential tax distortion caused by the transition to the new WLTP emissions standard in April 2020.
“It is vital that fleets and company car drivers are able to plan for the future, confident that they are working with more accurate emissions information and a fairer tax regime that rewards those who choose cleaner vehicles. These revised tax bandings can’t come too soon.”
Expressing disappointment that the Chancellor did not use the Budget to help stimulate demand for electric vehicles, Gerry went on to say: “The Chancellor chose to ignore the overwhelming voice of fleets, motoring groups, business organisations, environmental groups and MPs – all of whom were united in calling for this simple tax measure to support the electric vehicle market.”
“The Government has missed a golden opportunity to incentivise the most important market for electric cars and is in danger of undermining its own Road to Zero strategy. “
The BVRLA’s disappointment was shared by Neil Parish, Chair of the Environment, Food, and Rural Affairs Select Committee, one of dozens of MPs that had supported the association’s call.
“By not bringing forward the 2% Company Car Tax rate for zero-emitting vehicles by one year the Government has signalled that transitioning to cleaner and greener vehicles is not a priority.
“This is a disappointing decision and will discourage company car drivers from choosing an electric vehicle until April 2020. Building on the strong cross-party support for this policy, I’ll continue campaigning to change the Government’s mind and will be exploring opportunities to amend the Finance Bill to introduce this.”
Over 250 members joined today’s live webinar: 2018 Budget: What does it mean for our industry? The webinar will be published on the association’s YouTube channel at a later date.
Read the BVRLA press release published 29 October: Fleets need a fair tax regime that rewards clean choices
The association has updated the following advisory factsheets following the Budget, which can be viewed on the BVRLA website: