Fleet News

Car rise hopes

THE Government believes tax concessions unveiled in the Budget will support the acquisition of 7,000 new business cars in the current financial year. Paul Boateng, financial secretary to the Treasury, said enhanced capital allowances for cars with carbon dioxide emissions of up to 120g/km would also lead to over 10,000 business car purchases in 2004/05.

The cost of the capital allowance concession will cost the Government £5 million this financial year, and £10 million next year and the year after.

Boateng added that the new lower rate Vehicle Excise Duty for super-clean new cars would benefit 34,000 new cars in 2002/03 and 105,000 by 2004/05. The new rate applies to all new cars bought from this month onwards that have CO2 emissions below 120g/km, and will see petrol cars taxed at £70, diesel cars at £80 and alternatively-fuelled cars at £60 for the year.

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