BVRLA calls for 3% diesel surcharge to be axed
In the association’s submission to the Chancellor, it outlined a number of simple changes that the government could make to the current company car tax regime in light of its "simpler and more efficient" agenda. In particular, it calls for a removal of the current 3% diesel supplement in benefit-in-kind tax for company cars and fuel.
'Removing this historically out-of-date, pollution-related penalty would accelerate further corporate adoption of these vehicles and help to push company car emissions even lower,' said BVRLA chief executive, John Lewis.
'We accept that, in the current economic climate, there may be a need to make compensatory adjustments to the benefit-in-kind base lines in order to maintain the tax take.'
Elsewhere in its submission, the BVRLA highlighted how more than 34 million tax discs are produced, printed and distributed annually and said that it believes that eliminating them could save the government over £90 million each year.
It added that the use of automatic number plate recognition (ANPR) cameras and continuous registration laws mean there is no longer a need for tax discs to be displayed on windscreens.
With first-year vehicle excise duty rates rising significantly for high-emission vehicles, to £950 for some cars, Treasury officials have previously expressed concerns that high-value discs could increasingly be targeted by thieves.
'Not having to display a tax disc would bring us into the 21st Century and reduce the burden on fleet owners, who would no longer have to distribute them to drivers or retrieve them when they were seeking to obtain a refund,' said Mr Lewis.
'It would help the government make instant progress in its plans to cut government waste and the money could be invested in modernising some of the DVLA’s antiquated systems and working practices.'
The BVRLA has also called for multi-year VED to be introduced which, it says, would save the industry up to five million pounds in administration costs each year, as well as improving the cash flow to the Exchequer and reducing workload at the DVLA.
'Having previously shared our proposals with the DVLA, we know that it is equally keen to see this measure pursued,' Mr Lewis added.