SMMT seeks clarity from Chancellor on vehicle taxation for auto industry
The automotive industry is a vital part of the UK economy accounting for £55 billion turnover and £12 billion value added. With more than 700,000 jobs dependent on the industry, it accounts for 10% of total UK exports and invests £1.3 billion in automotive R&D each year, according to The Society of Motor Manufacturers and Traders (SMMT) Sustainability Report 2012 and Motor Industry Facts 2012.
With the industry being as crucial to the economy as pointed out above, the SMMT have released details ahead of the Chancellor of the Exchequers’ Autumn Statement, that show the UK automotive industry has identified vehicle taxation as a key issue as part of a wider package of industrial strategy measures that should reinforce the long-term growth and competitiveness of the sector.
The SMMT feel that last year's Budget 2012 dealt a blow to consumers, businesses and automotive manufacturers with announcements impacting confidence in the crucial low and ultra-low carbon markets, denting uptake rates and prospects for UK leadership in the field.
In a letter to the Chancellor, SMMT called on government to revisit three core areas of vehicle taxation that impact on motorists and industry:
Low carbon vehicles – Government should revise the Budget 2012 decision to cut Company Car Tax rates for low carbon vehicles and commit to consumer incentives beyond 2015.
Capital allowances – The proposed 2013 reduction of Writing Down Allowance (160g/km CO2 to 130g/km CO2) should be delayed by a year.
VED – There should be no radical reform of VED until at least 2020. Instead, government should gradually and predictably adjust the regime allowing sustainable financial returns and environmental progress without impacting the sector's fragile recovery and development.
The Chancellor has been asked to ensure that he uses the Statement to support the ambitions of industry and government through an internationally competitive, Industrial Strategy.
To read more of the SMMT's statement regarding taxation clarity, please click here.
With the industry being as crucial to the economy as pointed out above, the SMMT have released details ahead of the Chancellor of the Exchequers’ Autumn Statement, that show the UK automotive industry has identified vehicle taxation as a key issue as part of a wider package of industrial strategy measures that should reinforce the long-term growth and competitiveness of the sector.
The SMMT feel that last year's Budget 2012 dealt a blow to consumers, businesses and automotive manufacturers with announcements impacting confidence in the crucial low and ultra-low carbon markets, denting uptake rates and prospects for UK leadership in the field.
In a letter to the Chancellor, SMMT called on government to revisit three core areas of vehicle taxation that impact on motorists and industry:
Low carbon vehicles – Government should revise the Budget 2012 decision to cut Company Car Tax rates for low carbon vehicles and commit to consumer incentives beyond 2015.
Capital allowances – The proposed 2013 reduction of Writing Down Allowance (160g/km CO2 to 130g/km CO2) should be delayed by a year.
VED – There should be no radical reform of VED until at least 2020. Instead, government should gradually and predictably adjust the regime allowing sustainable financial returns and environmental progress without impacting the sector's fragile recovery and development.
The Chancellor has been asked to ensure that he uses the Statement to support the ambitions of industry and government through an internationally competitive, Industrial Strategy.
To read more of the SMMT's statement regarding taxation clarity, please click here.
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