Taxation

Press Release: Government Urged to Restore Buyer Confidence

By 31st January 2020 No Comments

Following the recent dismal new car sales figures [1], the ABD calls for an urgent but simple commitment from the government.

ABD spokesman Nigel Humphries explains: “Buyers are holding back for one simple reason, fear of future taxation policies rendering their new purchase unusable and worthless. The government must make a simple commitment that new and used cars bought today will face no increase in taxation above inflation for the life of the vehicle. Maverick councils must be stopped from introducing selective usage or parking charges on spurious air quality grounds”. [Refs. 2,3].

Many drivers are, of course, going to prefer to stick with tried-and-trusted (and nowadays very clean) Internal Combustion Engine technology for the foreseeable future.

Government must therefore guarantee that the current fuel usage based taxation régime for such vehicles will be maintained indefinitely; i.e. no imposition of road pricing on conventionally-fuelled vehicles.

The ABD believes that the charging infrastructure for electric vehicles should be so designed that the cost at today’s prices is commensurate with that for filling up a conventionally-fuelled vehicle; and EVs should also pay the same VED as conventional vehicles. It may, however, in the longer term prove to be appropriate to specifically charge electric vehicle use only on a pay-per-mile basis.

References:

(1) https://www.motortrader.com/motor-trader-news/automotive-news/uk-car-production-hits-10-year-low-2019-30-01-2020

(2) See https://www.abd.org.uk/diesel-and-petrol-car-demonisation-scientifically-unjustifiable-says-abd/

(3) https://www.abd.org.uk/air-quality-vehicles-truth/

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