RAC opposes new proposals to reform car tax

RAC is today voicing its opposition to new proposals to replace vehicle excise duty with a one-off emissions charge on new cars.

The plans published yesterday in a report by think-tank CentreForum are aimed at cutting 2.6% off total UK carbon emissions and come as the Treasury is considering the best way to reform vehicle excise duty.

Under the proposed scheme a new one-off purchase tax would be charged on cars with engines that produce large volumes of CO2 and other pollution. A proportion of the money collected would be used as a subsidy towards buying the most efficient vehicles.

RAC technical director David Bizley says: “Any new form of duty that is charged on the price of new cars is hugely unfair on larger families who require bigger cars to get around. It also penalises people that do not drive many miles a year but may need to run a larger, four-wheel drive vehicle because of where they live or the job they do.

“This type of scheme is only fair if everybody drives the same amount of miles a year. For this reason RAC is in favour of a scheme based on the number of miles a car is driven a year.

“RAC strongly supports the reduction of carbon emissions but is urging the Government to conduct a wholesale review of motoring taxation to ensure every element from vehicle excise duty to the duty and VAT charged on fuel is considered to give the motorist a fair and transparent deal.

“RAC is working to reduce the emissions impact of its roadside assistance patrols by encouraging local repairs, using low emissions vehicles and driving to minimise fuel consumption.”

RAC is a strong supporter of green vehicle technology and is the lead sponsor in the Royal Automobile Club’s Future Car Challenge, which takes place on 3 November 2012 between Brighton and London. The event aims to inform and excite the motoring public in the capability of low emissions vehicles in a 63-mile fuel-efficiency competition featuring both production cars and prototype vehicles.