THE Confederation of British Industry has called for no shake-up in company car taxation with any possible changes introduced only after consultation. In its Budget submission the CBI said current levels of company car tax were on average 'a broadly accurate reflection of the private benefit that they represent'.

And, it added: 'There is therefore no justification for an increase in the overall level of taxation on company cars, although changes to the structure of that taxation might be considered.' But, it warned the Government: 'The effects of company car taxation and its interaction with motorists' behaviour are complex and poorly understood. For this reason any possible changes should be opened to wide consultation and not introduced precipitately.'

However, in a bid to simplify existing tax arrangements the CBI says that changes should be made to the rules governing the calculation of business mileage for company car drivers who have two or more company cars consecutively during a tax year.