NFDA slams green purchase tax plan

‘The motor sector has become the target of choice for political parties jostling to be the greenest during this year’s conference season, and the Treasury’s leak of plans for a £2,000 tax on new cars, prior to an official announcement as part of the Pre-Budget Report, is another cynical attempt to score points,’ according to Sue Robinson, director of the National Franchised Dealers Association (NFDA), the body representing franchised car dealers.

A leaked Treasury paper has revealed plans for a £2,000 ‘Purchase Tax’ on new, higher emission vehicles bought from franchised car dealers, linked to an increase in road tax. Those buying vehicles with lower emissions would still pay the tax, but receive a rebate.

Robinson believes that the plan is a bad idea: ‘the tax will be only be fully levied on a small number of vehicles, so it is unlikely to have any measurable environmental impact. However, the impact on motor dealers could be considerable. Apart from increasing prices in the showroom, the need for a tax rebate on smaller vehicles could tie dealers up in a red tape knot.’

Robinson adds: ‘It is a media sound-bite to get attention during conference season. However, if it does appear in the Pre-Budget Report, the NFDA will raise this issue in our submission to the Chancellor.’