Most polluting new vehicles should pay £2000 duty

12.00.00am UTC (GMT +0000) Sun 30th Apr 2006

If people choose to purchase the most polluting cars they must recognise the environmental cost

The Liberal Democrats today tabled an amendment to this year's Finance Bill that would drastically increase the top rate of vehicle excise duty from £215 to £2000 a year for the most polluting new vehicles.

The new rate would cover high emission vehicles such as the BMW 7 series, Bentley Continental, and four by fours like the Porsche Cayenne, BMW X3 etc.

Commenting Liberal Democrat Shadow Environment Secretary, Chris Huhne MP said,

"The proposal for a dramatically more progressive Vehicle Excise Duty will shift patterns of car buying and tackle the source of greenhouse gases from transport.

"Research from the Energy Savings Trust shows that a top rate of £2000 would help change behaviour and cut CO2 emissions. If people choose to purchase the most polluting cars they must recognise the environmental cost.

"Gordon Brown's much touted green measures in the budget were purely cosmetic as the extra VED of £45 is less than the cost of half a tank of petrol for many of these cars.

"The VED restructuring is part of a green tax switch that will move the burden of tax from incomes onto activities that damage our environment through high carbon emissions.

"Both David Cameron and Gordon Brown are still pretending that we can tackle climate change only by influencing businesses through taxation or regulation, whereas we have to change individual behaviour as well."

Julia Goldsworthy MP, the Liberal Democrats Shadow Chief Secretary to the Treasury who tabled the amendment to the Finance Bill, said:

"Our tax system needs to be greener and fairer, but this does not involve an overall increase in tax as we intend to bring forward cuts in personal income taxes.

"Aimed at the poorest in our society, these income tax cuts will do most to improve work incentives. The Lib Dems are the first mainstream party to propose a green tax switch".

"The amendment the Liberal Democrats have tabled would mean the amount paid by the worst offending gas guzzlers would go up, while also taking into account the fact that recent petrol price rises have hit those in rural communities most heavily who have no alternative to driving a car.

"This is firm action to tackle climate change and make the polluter pay."