Road to zero carbon ‘must not be blocked’
Written by: Fuel Card Services, Last updated:14th February 2022
The UK’s policymakers have been warned of the dangerous consequences of a failure to properly support the fleet sector in its efforts to reduce carbon emissions through a fair tax regime.
Ongoing support for fleets is needed
According to the British Vehicle Rental and Leasing Agency (BVRLA), the introduction of the incoming Worldwide Harmonised Light Vehicle Test Procedure (WLTP) means it is essential to have a supportive tax regime that reflects the efforts of the fleet sector to minimise its level of emissions.
In order to achieve this, the BVRLA is calling for:
- Adjustment in future vehicle excise duty (VED) and company car tax bands for 2020 and beyond to account for the increase in WLTP-based CO2 figures
- Guarantees that all CO2-related taxes and charges are treated consistently under WLTP
- A four/five-year view of future company car tax and VED bands, enabling fleets and drivers to plan their vehicle choices
- Freezing the rates for all pre-April 2020 legacy vehicles at the 2018/19 level
Transparency is key
BVRLA chief executive Gerry Keaney stated: “Most policymakers recognise the vital part that these fleets will play in delivering the government’s flagship Road to Zero and Industrial Strategy.
“We need HM Treasury to acknowledge and support the fleet sector’s role by providing a fair, consistent and well-signposted tax regime.”
He added that what is most needed now is an element of transparency from the government, with WLTP not used as an excuse to “boost Treasury coffers”.
Jenny Smith, general manager for Tele-Gence, commented: “Policymakers need to ensure a fair level of support for fleet providers or run the risk of undermining their own efforts to tackle the carbon crisis. Helping to give clarity on future rates and duties will be a benefit for all.”
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