Motor Vehicles: Excise Duties

HM Treasury written question – answered on 2nd November 2015.

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Photo of Christopher Chope Christopher Chope Conservative, Christchurch

To ask Mr Chancellor of the Exchequer, whether the Government is taking steps to recover underpaid vehicle tax in respect of vehicles with higher emissions than certified by emission test data.

Photo of Damian Hinds Damian Hinds The Exchequer Secretary

Vehicle Excise Duty (VED) rates are based on carbon dioxide (CO2) emissions. The “defeat devices” recently found in some VW diesel cars affect nitrogen dioxide (NO2) emissions. There is therefore currently no evidence that this issue has resulted in an artificial reduction in VED revenues.

UK taxpayers will not incur higher VED if their existing vehicles are found to be fitted with illegal software that manipulates emissions tests. Following VW’s admission of using ‘defeat devices’ in diesel cars there is an ongoing UK government investigation.

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