Fleet News

1994 tax changes have little effect on fleet buying, says survey

THE move to taxation of company cars on the basis of price has had little impact on fleet buying habits, according to the latest National Travel Survey. The report, covering 1994 to 1996, published by the Department of the Environment, Transport and the Regions, examines the travel habits of people living in Britain.

It concludes that the change to company car taxation in 1994, which meant it was no longer based on engine size, had done little to achieve its aim of altering the choices made by fleets and drivers. The report says: 'Among other things, this was designed to reduce the appeal of acquiring a company car within the bands available. The figures from the NTS do not suggest that this has yet altered the pattern of company car buying. The average engine capacity of company cars rose from 1800cc in 1989-91 to 1890cc in 1994-96, while the average for non-company cars was almost unchanged over the period at 1510cc.'

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