A cross-party group of 42 Parliamentarians countersigned a letter from Neil Parish MP, calling upon the Chancellor to use the 2018 Budget to stimulate the uptake of electric vehicles.
The letter makes it clear that taxation policy is a critical lever in stimulating demand for electric vehicles and therefore urges the Chancellor to bring forward the company car tax reduction to 2% in April 2019, rather than maintaining the current plan to increase it to 16% in 2019/20, before falling to 2% in 2010/21.
Speaking about the letter, Neil Parish MP said: “We are urging the Chancellor to bring forward a planned reduction in Company Car Tax by just one year. Patchwork tax policy is not helping drive consumer behaviour and should be replaced with streamlined legislation to encourage the uptake of electric vehicles. The Government cannot tackle the urgent issue of air pollution with the handbrake on.”