THE Retail Motor Industry Federation (RMI) has won its battle to stop HM Customs and Excise adding VAT to Vehicle Excise Duty when a car is sold.

The RMI claims a potential £70 million tax burden on the motor sector has been avoided.

Matthew Carrington, RMI chief executive said: 'The RMI argued that the cost of such a change, estimated at £70m across the industry, would be too much of a burden and run against current business practices.