Fleet News

Chancellor given reform advice

REFORMS of company car taxation, fuel duties and vehicle excise duty are at the heart of pre-Budget submissions made to Chancellor Gordon Brown by key representative bodies of motorists and the fleet industry. The British Vehicle Rental and Leasing Association has urged Chancellor Gordon Brown not to attack the company car in the new Government's first Budget on July 2.

The BVRLA reiterated its commitment to measures which help the environment, but said these should not prove detrimental to the economy.

It is concerned that higher vehicle excise duty on large engined cars would strike a devastating blow to the used car market, unless it is phased in gradually.

The RAC has called for an abolition of vehicle excise duty and a reform of company car taxation in its Budget submission. The motoring organisation believes additional business mileage thresholds of 9,000 and 15,000 miles would discourage drivers from undertaking unnecessary trips simply to realise the current tax break at 18,000 miles.

The AA has warned that Brown is looking to increase Insurance Premium Tax on motor policies to 17.5%, from its current 4% level, in the July Budget.

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