Fleet News

Policy threatens alternative fuel growth

CONFUSION over future company car tax policy on alternative fuel vehicles could threaten future growth of 'green' fleets, a Fleet Show 2000 Forum heard. Under the new CO2-based company car tax regime, to be introduced in 2002, aftermarket gas vehicles will be pay tax based on their petrol emissions, while production line vehicles pay according to their gas emissions, which are significantly lower.

The cost of the LPG equipment is not included in the benefit-in-kind calculations for converted vehicles, but they are still on average more expensive. David O'Gorman, head of transport for the John Lewis Partnership, which has 20 LPG vehicles, a mixture of conversions and production line models, said: 'We keep cars on a four-year cycle, so drivers in converted vehicles will be affected by this and they may find it cheaper to move into diesels.'

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