Clause 44
Finance Bill
6:15 pm
Justine Greening (Shadow Minister, Treasury; Putney, Conservative)
It is a pleasure to serve under your chairmanship, Mr. Hood. I have one brief question on the clause. I understand what the clause seeks to achieve, but I want to ask about the new tax regime for qualifying low CO2 emission cars, which has been introduced from April this year. From that date, cars with CO2 emissions of under 120g/kg are subject to an appropriate percentage of 10 per cent., which will be increased by 3 per cent. if the car has a diesel engine.
What assessment has the Treasury made of the number of cars that are likely to take advantage of that tax regime over the next three years? What amount of tax giveaway will be provided as part of that regime, to encourage those who have company cars, and companies that have company cars as a taxable benefit, to choose qualifying low CO2 emission cars, rather than going for the more traditional company car models that people have chosen in the past? That is the main question that I wanted to ask, to obtain more information about the qualifying low CO2 emission cars, and I would be grateful for any light that the Minister can shed on the Treasury’s expectations of how the scheme will work.