BVRLA calls for clarity over corporation car taxes
Industry organisation, British Vehicle Rental and Leasing Association (BVRLA) has called for a fairier and more transparent approach to car taxes ahead of the April Corporation Tax reforms.
The Government must use the forthcoming Pre-Budget Report to clear up all remaining uncertainty surrounding the major Corporation Tax Review planned for April 2009, BVRLA says.
BVLA say the areas where clairy is required are;
• Transitional Rules – businesses need to know how long cars purchased or leased before April 2009 will be ‘grandfathered’ in the current regime
• The Lessee Chain – we need confirmation that only the final customer in the lease chain is subjected to a lease rental restriction (LRR). This would remove the current, unintended consequence of the proposed tax review, where all the parties in a lease chain are hit by the LRR
The BVRLA is also calling on the Government to form a fairer tax regime, claiming that the current system penalises fleets and drivers for cars they bought a long time ago. The organisation which represents the interests of vehicle rental, contract hire and fleet management companies on major policy issues, would like to see a reduction the scale of the planned increases in VED for existing higher emission cars (over 180 g/km CO2) and the removal of what they call the ‘unjustified’ 3 per cent diesel supplement from company car and fuel benefit-in-kind taxation.
“Clearly the current economic climate rules out any significant reduction in motoring taxes,” said BVRLA director general John Lewis. “But by giving us some clarity on its tax strategy, the Government can help businesses plan with a bit more confidence during these turbulent times.”
“We can understand the Treasury’s argument for increasing VED for new higher polluting cars, but we feel the scale of the rise is unfair on people who have already purchased cars expecting to see the traditional inflationary increases in excise duty,” said Mr Lewis.
“Taxing vehicle owners for a decision they have already made will only work if they are given some form of scrappage incentive scheme that encourages them to buy a lower emission model instead,” he added.
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