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BVRLA includes FYAs for EVs in Budget wish list

By / 7 years ago / Latest News / No Comments

In its Budget submission, the BVRLA's key request is for the Treasury to provide more details on the 100% first-year allowance it is introducing for companies purchasing electric vans. This allowance enables firms buying one of these vehicles to offset their full cost against their corporation tax bill in the first year.

The BVRLA wants to know if leasing companies will be able to take advantage of the allowances and pass on the savings to their customers.

'We are still waiting for a response on this issue,' said the BVRLA's chief executive, John Lewis.

'The van market is in the doldrums and in the current economic climate most companies cannot afford to go out and buy new vehicles outright. Many of them turn to a leasing provider and our industry is absolutely vital to the new van market.'

The BVRLA also asked the Treasury to ensure that its tax incentives incorporate all zero tailpipe emission vehicles and not just electric ones.

And during a meeting, the association asked the government to consider a number of other issues ahead of its 2010 Budget:

  • An immediate removal of the 3% diesel supplement from Benefit-in-Kind tax

'Removal of this historically out-of-date pollution-related penalty would accelerate further corporate adoption of these vehicles and help to push company car emissions even lower,' said John Lewis.

  • An investigation of the continuing use of over-generous advisory mileage allowance payments (AMAP) which encourage staff to use their own cars instead of potentially much greener and safer forms of transport

    'Together with the Office of Government Commerce, we have done a lot of work to try and make organisations aware that inflated AMAP rates are damaging their environmental and road safety credentials,' said John Lewis.

    • An update of the Vehicle Certification Agency’s (VCA) van CO2 database to include accurate and comparable data on vehicle payloads

    'The current database is supposed to help van buyers make an informed choice, but it is not fit for purpose. If the government is serious about introducing emissions-based taxes for vans, it needs to sort this out,' said Mr Lewis.

    • Clarification by the government of its position on road pricing. The BVRLA says it's in favour of a national scheme that will permit easy travel across the country and will help optimise use of the road network. It should only be used to replace existing forms of motoring tax, not as an additional revenue earner.

    'Road pricing is a fairer tax that is based on road use, not vehicle ownership,' said John Lewis.

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