Motor Vehicles: Excise Duties

Treasury written question – answered on 10th March 2020.

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Photo of Preet Kaur Gill Preet Kaur Gill Shadow Minister (International Development)

To ask the Chancellor of the Exchequer, what assessment he has made of the effect of changes to Vehicle Excise Duty and the £40,000 list price premium on the second-hand car market for (a) zero- or low-emission cars and (b) petrol or diesel cars.

Photo of Preet Kaur Gill Preet Kaur Gill Shadow Minister (International Development)

To ask the Chancellor of the Exchequer, what assessment he has made of appropriateness of the level of VED's £40,000 list price premium in incentivising the purchase of zero and low emission vehicles.

Photo of Jesse Norman Jesse Norman The Financial Secretary to the Treasury

VED is designed to incentivise the uptake of cars with low carbon dioxide emissions. Zero-emission cars pay neither first year VED, nor the standard rate in subsequent years.

The ‘expensive car supplement’ is designed to ensure people who can afford the most expensive cars pay more than the standard rate imposed on other drivers.

All taxes remain under review. Any changes will be considered by the Chancellor and announced at fiscal events.

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