Fleet News

Fleets caught in political storm over company car tax

FLEETS are at the centre of a political row over the attitude of a future Labour Government towards company car taxation. The Labour Party has refuted national newspaper speculation that the company car will be a primary tax target under the party's new transport policy.

However, the Conservative Party hit back by branding Labour the 'tax-raising, business-bashing, anti-car party'. Shadow transport spokeswoman Clare Short disowned a 'policy statement' picked up by The Guardian indicating Labour would clamp down on 'company car tax evasion'.

The Guardian claimed the document suggested that many company cars were perks given as part of salary packages rather than because of genuine need and that Labour was planning a drastic reform of company car use. It proposed taxing the full value of free fuel to company car users and penalising those who could not prove that they had been using their cars for business.

Junior transport minister Steven Norris said the document betrayed Labour's tax-raising, anti-car credentials. But, with the government's Parliamentary majority down to one and Labour tax policies in the political spotlight both Labour Party HQ and Clare Short's office said the party had no plans to reform the current company car tax system.

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