Government reviews higher taxes for gas-guzzlers
The Government is assessing the merits of increased vehicle excise duty (VED) for high-polluting cars.
Supporters of the idea at the Department of Transport believe higher VED for “gas-guzzlers” would put off people buying cars that damage the environment the most.
Cars with large engine produce as much as five times more carbon dioxide per mile than the most fuel-efficient cars, scientists say.
David Jamieson, Transport Minister said: “People have suggested a much higher band for gas-guzzlers.
“We will be looking to see how we can use VED to better reflect carbon dioxide emissions. We are working very closely with the Treasury on these matters. I suspect more people will be guided by their pocket than by their environmental concerns.”
Road tax is already assessed, in part, on car engine size but ministers say there is little deterrence for heavy polluters.
The speculation comes as the car industry announced it would introduce voluntary targets for carbon dioxide emissions.
EU car makers are aiming for a 25 per cent improvement in fuel economy by 2008.
In 2008, it is forecasted, cars will produce no more than 140g of carbon dioxide per kilometre, compared with an average of 178g/km today.
The Government has set the interim target for 2012 of one in ten vehicles sold with carbon dioxide emissions of 100g/km or less.
Edmund King, executive director of the RAC Foundation, said: “Five years ago the car industry was so Luddite in its attitude on this issue, but now it is working hard to reduce emissions. Obviously it doesn’t want to be pushed by legislation that is too draconian, so it is choosing to set voluntary targets.”
