posted 9 years ago

Extra CO2 tax band called for

Luxury car buyers have no incentive to downsize says Clean Green Cars

According to new research by Clean Green Cars, sales of high-end cars emitting over 275 g/km CO2 have risen because the current road tax system offers consumers no incentive to downsize. The recent cost increase for the highest Band G road tax (applicable to cars above 225g/km CO2) has led to buyers trading down from models just over the threshold - but the threshold is in the wrong place, argues the website. Virtually all cars currently on sale (99.8%) emit somewhere between 100 g/km and 450 g/km CO2 - yet the top band is set at just 225 g/km. Therefore someone wanting a large off-roader is going to pay the same tax on a Land Rover Discovery TDV6 (244 g/km) as a Range Rover Supercharged (376 g/km).

More than that, at the moment the owner of a Renault Espace 2.0T litre petrol automatic (227g/km) pays the same road tax as a Ferrari F430 driver (420g/km).

Jay Nagley of Clean Green Cars suggests a solution: "What we need is a new Band H, set at around 275 g/km. That would give luxury car buyers an incentive to think about CO2 outputs - at present, virtually every car on their shopping list is in Band G, so why would they consider CO2 figures when buying a car?"