Fleet News

Consultation document questioned by industry

THE Society of Motor Manufacturers and Traders has called on the Government to come clean about the true aim of the Vehicle Excise Duty consultation document. Concentration has been on a £50 cut in VED for smaller, cleaner cars, but the motor industry is demanding more information about the other end of the scale which most affects fleets and which could see VED rates rise significantly above the present £150 flat rate level.

Paul Everitt, head of policy and economics for the SMMT, said: 'The Treasury has made it clear it doesn't want to discuss figures and by the time they are released in the Budget it will be too late for debate. It has realised that raising fuel duty at the pumps is becoming politically sensitive so is looking for an alternative source of revenue.'

The £150 flat rate VED raises more than £4 billion a year for Government coffers. Everitt warned that extra charges did not automatically mean less car use: 'If someone ends up paying £1,000 for the VED they are going to make sure they get the maximum use out of their carAnd if someone is only paying £50 more then it won't make them reconsider their driving habits.'

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