Taxes on cars ‘may increase to meet emissions reductions’

JonathanJune 30, 2011

Taxes on gas-guzzling cars and fuel may increase as the economy recovers, pollution experts have suggested, news which could interest car leasing customers.

According to the latest progress report from the Committee on Climate Change (CCC), the recession has led to more people buying fuel-efficient cars and making fewer unnecessary trips.

However, many could go back to being less environmentally friendly as the economy returns to health, it stated.

This would, in turn, make it harder for the government to meet legally binding pollution reduction targets, which could result in tax rises.

CCC chief executive David Kennedy said: “The strongest lever to encourage people to buy efficient vehicles is differentiation of excise duty. Fuel duty is the thing to impact miles travelled.”

Britain has a legal duty to cut carbon pollution by 50 per cent by 2025.

However, according to the CCC, emissions went up by three per cent last year, as a result of extra energy demand during periods of cold weather.

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