Does the government really have any idea what it is doing with all its efforts to reduce the CO2 emissions caused by cars?
There are so many different taxation proposals doing the rounds that it will be a miracle if anyone can actually explain what is going on.
The main point seems to be abolishing the bpm sales tax on new cars, which is not only 40% of the net catalogue value but also a thorn in the eye of the European Commission. Trouble is, it raises some €3.5bn for the treasury every year.
So the government could easily kill two birds with one stone by scrapping the tax and replacing it by a different system – the more you use your car, the more you pay – the hotly contested kilometre tax.
Seems pretty logical, even though it will do nothing to persuade people to drive more energy-efficient vehicles. So along comes yet another tax idea – this time to introduce an extra charge on the sale of more polluting cars – a so-called CO2 tax.
The motoring organisations have already come out with their predictable howls of rage. They say they won’t support the kilometre tax if motorists get penalised by yet another levy.
This, of course, has nothing to do with the fact that they want new car prices to come down. A CO2 tax will not help boost sales of those expensive but not exactly environment-friendly fast cars and SUVs.
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