The Society of Motor Manufacturers and Traders (SMMT) has called on the government to use its emergency budget on June 22 to remove the 3% surcharge on diesel cars that company car drivers are forced to pay on their benefit-in-kind (BIK) tax.
It also says the promised changes to company car tax due to be phased in from 2010 to 2015 should be retained. These changes relate to the graduated reduction in the BIK tax bands, meaning the less emissions a company car produces, the less tax a company car driver pays.
The Society has also called for the emergency budget should make fuel duty more clearly linked to world oil market trends, environmental goals, fiscal needs and the cost to business users. Incentives such as the cut-short boost for biofuels need to have durability and consistency, it added.
Finally, it said promoting the move to lower-emitting vans should be given a boost by incentivising the purchase of vehicles with lower emissions levels, funded by progressively higher rates for models with Euro 3, 2, 1 and 0 engines.