The Society of Motor Manufacturers and Traders has called on the Chancellor of the Exchequers to revisit three core areas of vehicle taxation that impact motorists and the industry in his Autumn Statement next week.
The SMMT does not want a radical reform of the vehicle excises duty (VED) system until at least 2020 and is also urging the Government to revise the Budget 2012 decision to cut company car tax rates for low carbon vehicles and commit to consumer incentives beyond 2015.
VED is an important part of the Government’s revenue stream and the SMMT said it appreciates that as new cars get increasingly efficient and CO2emissions fall, the taxation system needs to keep pace with developments to sustain public finances.
The SMMT believes a gradual adjustment is the fairest and most sustainable means of maintaining income without penalising motorists and disrupting demand.
In AM’s latest online poll, dealers are calling for the Government to reduce VAT to help boost consumer confidence with over 80% voting in favour of the move.
The SMMT also wants the proposed 2013 reduction of Writing Down Allowance (160g/km CO2 to 130g/km CO2) to be delayed by a year.
The SMMT believes the Budget 2012 dealt a blow to consumers, businesses and automotive manufacturers with announcements impacting confidence in the crucial low and ultra-low carbon markets, denting uptake rates and prospects for UK leadership in the field.
Paul Everitt, SMMT chief executive, said: “This year’s Autumn Statement must support Government’s Industrial Strategy work, promoting the long-term prospects for low carbon vehicle technology and encouraging private sector investment in R&D, skills and capital equipment.
“There are real opportunities for UK manufacturing from the global success of UK-produced vehicles, but we need to ensure that companies in the supply chain can access the finance they need to grow. It would be great to see the Chancellor extend the funding available through the advanced manufacturing supply chain initiative (AMSCI) and confirming the new R&D tax credit regime will be up and running early next year.”