Downing Street Says » Vehicle Excise Duty

» Monday, May 19, 2008

Vehicle Excise Duty

Asked if the Prime Minister had sympathy with Labour MPs signing the EDM on Vehicle Excise Duty, the PMS replied that the Prime Minister had been asked about this several times in the last few days, and had made his position clear on this.

Asked what his position was, the PMS replied that the Prime Minister’s position was that the majority of car owners were no worse off or better off as a result of the changes made in the Budget this year. But of course it was also important that we continued to take action to deal with the environmental consequences of vehicle emissions.

Asked if there was any question of changing policy, the PMS replied that the whole point of what we were trying to do was to ensure that in the different bands for Vehicle Excise Duties there was a range of different vehicles. So if you wanted to purchase for example a low polluting family car, and pay lower VED, then you would be able to do that.

Put that the whole point here was that this was retrospective, the PMS replied that this was not coming into effect until 2009 at the earliest. It was not retrospective in the sense that you were not paying tax that was due on previous dates. The tax only became due in 2009.

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