BVRLA highlights CO2 policy muddle


The call comes following the release of SMMT data showing that average new car CO2 emissions have started rising for the first time in almost 20 years. The SMMT also confirmed that sales of pure electric cars have fallen by a third in the first two months of 2018 compared to the same period of 2017.

In a letter to the Chancellor sent prior Phillip Hammond’s Spring Statement, BVRLA Chief Executive, Gerry Keaney said, “Our members are keen to accelerate the uptake of newer and more efficient vehicles and are already responsible for the majority of plug-in registrations. They tell us that the current Company Car Tax regime is making these vehicles less attractive to employees.”

The BVRLA urged the Chancellor to accelerate the introduction of its 2% Company Car Tax band for zero-emission vehicles. This tax band is currently scheduled to increase over the next two years to a high of 16% in 2019/20, before dropping to 2% the year after. There are signs that the current tax rate is putting the brakes on new EV registrations from company car drivers, who are postponing the jump to electric until the tax regime offers an incentive. BVRLA members would also like to see further clarity on Company Car Tax rates beyond the 2020 tax year.

The BVRLA believes that recent changes to the Company Car Tax regime have encouraged many employees to leave their company car scheme and either lease their own vehicle or use an existing household one. Its data reveals that in Q4 2017 business lease fleet shrank by 2% year-on-year, while the personal lease market grew by 20% in the same period.

Keaney added, “With frequent and well managed fleet replacement cycles, BVRLA members are responsible for nearly 50% of new car registrations. We want to work as a constructive partner with government, delivering a rapid shift to zero-emission motoring, while recognising the need to sustain tax revenues.”


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