Fleet News

Select committee call to scrap mileage tax breaks

A POWERFUL cross-party parliamentary committee has called for the Government to scrap business mileage tax breaks for company car drivers. The influential Environmental Audit Committee questioned leading politicians and received submissions from 'green' lobbyists such as Friends of the Earth and London First before reaching its stark verdict.

'We urge the Government to address the perverse incentive to travel more miles, which exists under the company car taxation system,' it said - without advocating any form of alternative structure. The committee's recommendation will add to the mounting speculation that Chancellor of the Exchequer Gordon Brown will announce an overhaul of company car tax in his Budget on Tuesday.

EAC member Tim Loughton MP (Con. Worthing East and Shoreham), said: '50% of new cars are company cars, so anything you do to make cars more environmentally friendly must be targeted at company cars because that is where you have got fleet buyers and you can really have an impact.'

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