The tax regime is a powerful way of incentivising businesses and individuals to choose low emission vehicles and shared mobility options.
Fleets are leading the charge to decarbonise road transport if current incentives continue and our ‘Plug-in Pledge’ will see the sector registering 400,000 battery electric vehicles (BEVs) per year by 2025, making it responsible for 80% of new battery electric car and van sales.
It is too early to roll back support for zero emission vehicles. Industry needs clarity and Government needs to set out their short, medium and long term motor taxation strategies so the industry has the clarity needed to decarbonise.
HM Treasury must work with other departments to align transport policy, industrial strategy and taxation measures to ensure our sector can continue to drive the zero emission vehicle transition.
The current taxation structures do not work for or incentivise shared mobility options. This needs to be reviewed.
The CBI published a paper setting out how the taxation system could support net-zero. The BVRLA input into the transport section of the paper and it covers many of the key asks which would assist the decarbonisation of transport.