Fleet News

Government urged to set 'aggressive' CO2 taxes

THE Government is being urged to introduce higher taxes for ‘gas guzzling’ cars and tough environmental targets to reduce carbon dioxide emission.

The Energy Saving Trust (EST), experts in transport energy efficiency, today launches 'Agenda for change - action for a low carbon society', proposing a new band of Vehicle Excise Duty for vehicles emitting 220 or more grammes of CO2 per kilometre - or a further £150 on top of the existing top rate of tax. This would nearly double the existing top band, taking it to around £320.

EST recommends government adopts new home and transport energy efficiency targets for improvements of 2% each, every year. This would cut CO2 emissions by a similar figure annually. It admits these measures are ‘aggressive’.

'The tax system should be used to increase incentives for fuel efficient vehicles. This should be accompanied by a programme delivering clear environmental information for vehicle buyers and drivers,' said EST chairman, Eddie Hyams.

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