Company low-carbon car taxation 'surprising'

Date: 23/3/2012

Next Green Car claims it is "surprising" the government has chosen to change company car tax rates for electric vehicles (EVs).

In the Finance Act 2010, a five-year tax exemption for zero and ultra-low carbon emission vehicles was announced.

However, instead of extending this, Chancellor of the Exchequer George Osborne announced in his Budget speech earlier this week (March 21st) that rates for company motors of this kind would be set at 13 per cent from April 2015.

Managing Editor of Next Green Car Dr Ben Lane said: "While fiscal incentives should be time-limited, 2015 is far too early to expect EVs to compete with much lower priced petrol-hybrids and clean diesels."

Therefore, by introducing a tax, the government is likely to discourage uptake of these cars before momentum has even begun.

However, Mr Osborne also announced the cost of fuel will go up by 3.02p per litre this summer, which could encourage more companies to consider adopting EVs as an alternative to petrol-fuelled motors.

Posted by Nick Anderson