Fleet News

Engine-based VED branded 'misconceived'

THE Government has shot itself in the foot by basing Vehicle Excise Duty discounts on engine size, manufacturers have warned. The Society of Motor Manufacturers and Traders has branded the new scheme 'ridiculous', saying it has no environmental benefit and is simply 'public posturing of the worst kind'.

Although it had welcomed moves which will see the carbon dioxide emissions of the car used as the base for VED on new cars from autumn 2000, but say engine-based VED for cars built before then is flawed, inaccurate and unfair. Cars with engines under 1.1-litres will qualify for a £55 cut in excise duty from June 1, but the Government's own figures show that some smaller-engined models are more polluting than their larger counterparts.

Ian McAllister, chairman and managing director of Ford, said: 'The proposal announced today is misconceived and based on an erroneous judgement of how to measure what is environmentally sound.' A spokesman for Mitsubishi added: 'We have spent 30 years developing the GDI engine, yet this new system does not recognise that effort.'

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