2013 Budget: SMMT calls for company car tax changes
In its submission to HM Treasury, the SMMT has urged Chancellor George Osborne to announce a revised set of company car tax rates from 2015 with greater differentiation below 95g/km and significant levels of incentive for ultra-low carbon vehicles.
And the association has again called on the Government to review its Budget 2012 decision to change the writing-down capital allowance threshold for new vehicles. The assocation has previously said that proposed 2013 reduction of Writing Down Allowance (160g/km CO2 to 130g/km CO2) should be delayed by a year – as well as cutting Company Car Tax rates for low carbon vehicles and commiting to consumer incentives beyond 2015 – to reinforce the long-term growth and competitiveness of the sector.
The changes to company car tax form part of a number of changes that the SMMT is calling for as part of a competitive business environment as part of a new automotive sector strategy in Budget 2013. This includes changes to the Carbon Reduction Commitment (CRC) scheme, support for the Automotive Advanced Propulsion Centre and support for a stronger supply chain.
The SMMT’s interim chief executive, Mike Baunton, said: ‘SMMT calls on the Chancellor to spearhead a proactive government, support innovation, grow the low and ultra-low carbon vehicle market in the UK, and support opportunities in the supply chain; particularly in access to finance. We urge him to continue to develop the UK’s flexible workforce, and importantly, we need him and his colleagues in government to provide a strong voice in Europe.’