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SMMT calls for clarity on motoring taxation

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Monday, 27 July 2009
Category: Industry news

The UK government must develop a consistent long-term framework for motoring taxation that is fair to all drivers and fleet operators, it has been claimed.

According to the Society of Motor Manufacturers and Traders (SMMT), the increased market for low-carbon vehicles means emissions from road transport will continue to fall.

This will lead to a drop in tax income for the government under the current vehicle excise duty system - and the group says this must not lead to unfair adjustments and hikes.

Paul Everitt, SMMT chief executive, said: "Government must work with industry and other stakeholders openly on a new consistent and transparent long-term model for motoring taxation that is fair and helps industry to deliver low-carbon targets."

He added that any changes made to the current policy must take account of environmental and industrial goals, as well as revenue, in order to maintain trust in the system.

The call comes after a report by the Transport Select Committee revealed many drivers have become sceptical of motoring taxations due to the inconsistent approach taken by ministers.ADNFCR-1627-ID-19282639-ADNFCR