Road Tax

Treasury written question – answered on 31st October 2006.

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Photo of David Evennett David Evennett Opposition Whip (Commons)

To ask the Chancellor of the Exchequer how many people have applied for the new zero-rate road tax for environmentally-friendly cars.

Photo of John Healey John Healey The Financial Secretary to the Treasury

The Driver and Vehicle Licensing Agency (DVLA) administers the collection of vehicle excise duty (VED).

The zero VED rate for cars with the very lowest carbon emissions, (which applies to all band A cars registered on, or after, 1 March 2001), was introduced in Budget 2006 to encourage take-up and assist the development of the low carbon market.

There are currently 386 vehicles licensed as dutiable under the zero rate. However, it is not possible to extract the number of license renewals since the zero rate was introduced on 23 March this year.

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