Other CO₂ Based Taxation

The tax regime can prove to be a powerful way of incentivising businesses and individuals to choose low emission vehicles. However, a CO₂ based approach must be applied fairly to ensure it steers behaviour, rather than unduly punishing businesses. The transition to NEDC correlated and WLTP testing has produced higher vehicle CO₂ emissions. In light of these changes to emission levels recorded, the Government must ensure that it applies tax neutrality to all CO₂ based taxes.