Car tax divides MPs

Car tax divides MPs

Monday, 04, Aug 2008 12:00

The question of whether or not to impose green taxes on gas guzzling cars caused division in Westminster again today, with three members of an environmental commission launching a minority report calling the idea 'retrospective taxation' while the rest of the committee called for more radical proposals.

While the environmental audit commission said the move was a "step in the right direction," its Tory chairman called for greater changes than those now on the table.

Meanwhile, three of its members described the plans as a "new tax on old cars".

Liberal Democrat Jo Swinson, one of the authors of the minority report, said: "The public must have faith that green taxes are not about raising revenue for the Treasury, but in this case, their use is clearly more to do with filling Alistair Darling's coffers than cutting carbon emissions from our roads."

Most MPs on the committee disagreed, saying: "The only retrospective element in these changes is that the new rates will apply to cars that have already been bought. In itself there is nothing intrinsically unfair or unusual about this."

Friends of the Earth's transport campaigner Tony Bosworth said: "We're delighted the committee believes the government's car tax changes are right in principle.

"Ministers must stand firm on their road tax plans and do more to encourage greener travel and reduce transport’s contribution to climate change."

Official estimates predict a rise in vehicle excise duty (VED) for 43 per cent of cars made since 2001 but a reduction for 18 per cent, depending on how environmentally friendly they are.

The number of payment bands will increase from seven to 13 with those in the top bracket paying £455 for 2009/10 and those in the lowest, least polluting bracket paying nothing.