Excise Duties: Motor Vehicles

HM Treasury written question – answered on 17th March 2017.

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Photo of Gerald Howarth Gerald Howarth Conservative, Aldershot

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.

Photo of Jane Ellison Jane Ellison The Financial Secretary to the Treasury

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.

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