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Written question asked by Gerald Howarth (Conservative) on Wednesday, 8 March 2017, in the House of Commons. It was due for an answer on Monday, 13 March 2017. It was answered by Jane Ellison (Conservative) on Friday, 17 March 2017 on behalf of the Treasury.

Excise Duties: Motor Vehicles

Question

To ask Mr Chancellor of the Exchequer, if he will make an assessment of the implications for his policies of the finding of the British Vehicle Rental and Leasing Association report on the economic impact of changes to the vehicle excise duty, published in February 2017, that those changes will result in rental companies purchasing 24,800 fewer vehicles in 2017 compared with 2016.

Answer

The Government is fully committed to successful delivery of the VED reforms, which ensure that all cars other than ones which emit zero-emissions will contribute. At present, cars that emit less than 130g/km of carbon pay no VED in the first year. This is not sustainable at a time when the average new car emits 120g/km.

The Government appreciates this will affect car buyers such as rental companies who may sell vehicles in less than a year. The rules around VED refunds have not changed compared to the current system.

Secondary information

Type
Written question
Reference
67055
Session
2016-17
Subjects
Hire services Excise duties Motor vehicles
Link
View this Written question on www.parliament.uk