BVRLA calls for fairer taxes and less red tape in 2011 Budget
The association has made its submission ahead of Chancellor George Osborne's 23 March Budget, and is calling for a 'straightforward, technology-neutral company car tax framework which delivers clarity and certainty to road users' as well as 'protecting tax receipts for the Excheque'.
In its submission, the association reiterates its call for the removal of the out-of-date 3% diesel supplement in Benefit-in-Kind tax for company cars and fuel.
'This is the one glaring error in the entire company car tax regime,' said chief executive John Lewis.
'It penalises company car users for selecting the very same diesel vehicles that have the lowest CO2 emissions in their class.
'This supplement is well past its use-by date – we know it and so does the Government.'
And the BVRLA wants the Coalition Government to follow Labour's policy of providing a three-year advanced view of company car tax bands by announcing the figures for the financial year 2013/14.
It also asks the Government to abandon the next increase in fuel duty planned for April and introduce a fuel price stabiliser that will give essential road users a fairer and more settled cost of motoring.
Looking at the issue of red tape, the BVRLA has identified a number of areas where it says it believes the government can cut waste both internally and for vehicle owners.
The association is continuing is call for the DVLA to abolish the tax disc, saying that continuous registration laws and increasing use of automatic number plate recognition (ANPR) cameras mean that it is now obsolete. According to the BVRLA, abolishing the tax disc would save the DVLA over £90 million a year in administration costs and eliminate a massive amount of paperwork for fleet owners.
Allowing companies to pay their vehicle excise duty on a multi-year basis would bring similar benefits.
Finally, despite the recent surge in fuel prices, the BVRLA says it shares the concerns of many in the public sector about the tax-free mileage allowances being paid to employees using their own vehicles for work. It adds that the current 40p per mile level of Approved Mileage Allowance Payments (AMAPs) is too high and encourages people to use their own, often older, less environmentally-friendly vehicles instead of more appropriate means of travel, including public transport, rental or leased vehicles.
'We urge the government to align the rates to a level that represents the incremental cost of using a private car for business, rather than the total cost of ownership,' added Mr Lewis.