Clause 2 - Cars: determination of consideration for fuel supplied for private use
Finance Bill
10:45 am
Richard Spring (Shadow Minister, Treasury; West Suffolk, Conservative)
I thank the Financial Secretary for his explanation, and I am pleased that he has discussed the change with and consulted the business community. As he indicated, the clause paves the way for fuel scale charges—the notional VAT charge for fuel made available by employers to employees for private use—to be based on CO?2? emissions rather than engine capacity. It will penalise less efficient cars. It appears sensible to us, as it aligns the VAT bandings closely to those used for benefit in kind taxation.
However, will the Financial Secretary comment on what implication, if any, he thinks the measure will have for the Government's pursuit of a road pricing scheme?