Treasury sounds out lower tax rates for vans
VAN drivers and businesses buying new low-emissions commercial vehicles in the future may face lower tax rates.
Chancellor Philip Hammond said in his Spring Statement that the Treasury will consult on reducing Vehicle Excise Duty (VED) rates for the “cleanest vans”.
“This Government is determined that our generation should leave the natural environment in a better state than we found it, and improve the air we breathe,” Hammond told MPS.
“Following our successful intervention to incentivise clean taxis, we will help the great British white van driver to go green with a consultation into reduced VED rates for the cleanest vans.”
The news comes just days before new diesel cars will be hit with higher first-year taxes. New diesel models that fail to meet the latest Euro 6 emissions standards under tougher, real-world emissions testing will move up a tax band from 1 April onwards.
Announced in the 2017 Autumn Budget, the tax hike is expected to impact more than two million new diesel cars, although new diesel vans will be spared the rise in order to protect the white van driver, according to the Treasury.
The Government is expected to generate more than £185million in additional revenue over the next three years from the increase. That money will be funneled into clean air funds and help the transition to zero-emission vehicles.