Commenting on the letter from Lord Deben, Chair of the Committee on Climate Change, BVRLA Chief Executive Gerry Keaney said:
“The BVRLA is pleased to see its call to bring forward the 2% company car tax for ULEVs has been championed by the Committee on Climate Change in its letter to Secretaries of State Greg Clark and Chris Grayling. As our YouGov polling from July this year showed 4 in 10 SME senior decision-makers would be responsive to electric vehicle incentives such as a supportive tax regime, now is the perfect opportunity for the government to align its tax policy with its air quality ambitions and use the Budget later this month to support greener vehicle choices through the uptake of company cars.
“If leveraged appropriately the company car tax scheme has enormous potential to support the government’s ‘Road to Zero’ aims. Unfortunately the present plans to increase the tax on ULEVs before dropping to 2% will undoubtedly put off many fleet managers and drivers from taking up such vehicles. By expediting the shift to a 2% tax rate the Government could provide a much-needed stimulus to the electric vehicle market, which is currently growing at less than 4% per year.â€
