The Society of Motor Manufacturers and Traders (SMMT) is calling for stability in the tax regime.

Speaking to Fleet News prior to the launch of the SMMT’s New Car CO2 Report that shows ongoing reductions in average emissions of new cars, chief executive Paul Everitt said: “We understand that the Treasury is looking for the signals that guide good behaviour, but it equally has revenue expectations.

“The worse situation for us is that we are surprised by a change in the tax regime, so a response to what they perceive to be a shortfall of taxation means they adopt a measure that we’re not prepared for. From an industry perspective that disrupts our product plans."

He added: “Stability is very important to us.”

The report, which includes the affect taxation has had on the emissions of new cars, shows that in 2010, almost 40% of cars had emissions below 130g/km CO2 – the European fleet emissions target for 2015.

Additionally, nearly 40,000 vehicles were exempt from Vehicle Excise Duty (VED) with emissions under 100g/km (equivalent to about 70mpg).

See the next edition of Fleet News for further analysis of the New Car CO2 Report and comment from Paul Everitt.

To access the full report go to SMMT New Car CO2 Report 2011.