The Treasury has already ruled that the new tax regime will begin in 2002 for all company cars 'to avoid the confusion and complexity of two parallel systems and accelerate environmental benefits'. 'Retaining the existing system for cars registered before then would reduce the incentive to choose more environmentally-friendly vehicles. We are announcing the new tax system in good time to encourage people to start choosing more fuel-efficient cars between now and 2002,' said Hewitt.
She recognised that company cars 'are an essential business tool', and said emission improvements to company cars have a disproportionately beneficial effect on the environment because half of all new cars were bought by companies. Top Inland Revenue officials will be discussing company car tax changes on the opening day of the three-day 1999 Fleet Show at the NEC, Birmingham, from April 27-29 at the PricewaterhouseCoopers-sponsored Business Forums.
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