The government should use the Budget to encourage business take-up of ultra-low emission vehicles (ULEVs).
That’s the view of the BVRLA in its annual Budget Submission to the Chancellor, which is urging the Government to extend the nil rate tax band for zero emitting cars until 2016/17.
The Government currently plans to increase company car benefit-in-kind tax on electric vehicles to 5% in 2015/16, and the association believes that reversing the decision would give a huge incentive to businesses when choosing which vehicles to run.
The BVRLA’s other suggestions to the government include:
• Making a car’s list price (P11D value) inclusive of the Plug-in Grant
• Reinstating the First Year Allowance for ultra-low emission leased vehicles
• Supporting businesses to install charging points at workplaces
• Capping Approved Mileage Allowance Payments at 3,000 miles
BVRLA chief executive Gerry Keaney said: “The Budget is the perfect opportunity for the government to prove it is committed to driving the take-up of ultra-low emission vehicles.
“The suggestions we’ve made will increase business take-up of efficient cars and vans, and enable the government to meet its goal of moving the car fleet in this country to ultra-low emission vehicles by 2040.”
Keaney added: “BVRLA members are responsible for buying nearly half of all new vehicles sold in the UK every year and it is vital that the government supports this sector by encouraging sustainable business transport.
“The take-up of ultra-low emission vehicles will be a marathon, not a sprint, but where the rental and leasing industry leads, the private sector will follow.”