The Retail Motor Industry Federation has registered its concern over the growing tide of anti-car sentiment, while the AA is warning that motorists will not swallow more tax increases without clear signs of improvement in the public transport system. The RMI attacked the proposed £25 vehicle registration fee as yet another tax on the motorist and said company car tax should be left alone.
In its submission, the RMI says the 1992/93 review of benefit in kind taxation resulted in a fair and transparent assessment of the benefit in kind value of company car provision. RMI chief executive Christopher Macgowan said: 'We would urge the Government to recognise the validity of the Inland Revenue research which acknowledges that company cars are adequately taxed. The industry now needs a period of legislative stability, not a re-working of the basis of the new arrangement.'
The AA wants road fund licence revenue and a fair proportion of tax raised from fuel duties to go to a new body which will oversee funding of roads and local transport. It says that would allow an extra £1 billion a year to be invested in the transport network.