RAC Foundation calls for road tax changes to encourage low carbon cars
Sat 02 September 2006
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The RAC Foundation has called on the Chancellor to reduce car tax for the most fuel efficient, low carbon cars and increase it for the most polluting vehicles. The Foundation has also proposed the introduction of a new top band of Vehicle Excise Duty (Band G) for the most fuel inefficient vehicles.
In a letter to Chancellor Gordon Brown, the RAC Foundation said that there should be greater variation in rates of Vehicle Excise Duty in order to promote low carbon vehicles.
The Foundation commented that the introduction of variable Vehicle Excise Duty has had positive effects on the buying patterns of some motorists but there is scope for improvement.
The letter also said that the extra tax incentive would help strengthen the impact of the new colour-coded fuel economy labels that were introduced last year by the motor industry in a deal brokered by the LowCVP.
Related Links
RAC Foundation press release
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