Committee Backs Green Car Tax Plans

By Michael Ross
Published on 4 Aug 2008
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Committee Backs Green Car Tax Plans

A top Tory has provided support for Labour's scheme to impose pollution-linked vehicle excise duty to drivers dating back to 2001.

Government plans for a pollutions-linked car tax seem likely to get the go-ahead, after receiving the endorsement of a group of influential Conservatives.

An environmental audit select committee, made up of MPs from all parties but chaired by Tory MP Tim Yeo, said today that vehicle excise duty rates should be imposed on vehicles retrospectively up to 2001 - with drivers of more highly-polluting cars paying more. David Cameron and the rest of the shadow cabinet oppose the scheme, scheduled to be introduced next year.

Claims that the duty represented a retrospective tax were rejected by the committee. "The secondhand car market dwarfs the market for new cars, with around three vehicles sold for every one sold new each year. Rebranding existing cars could therefore have a bigger effect than increasing the differential for new cars," its report said.

The committee added that "much more ambitious" car tax reforms than changes to excise duty were needed in order to make an impact on emissions.

Speaking to the BBC earlier today, Mr Yeo said that the need to reduce car emissions made the question of whether or not to introduce green car taxes an "urgent issue".

He added: "People are buying cars all the time…we don't want them to stop driving, but we want them to choose the greenest car."

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