Millions of drivers could have Vehicle Excise Duty reduced to zero under new car tax rules

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Car Tax Changes and Calls for Fairness in Motoring Taxation: AFP Manifesto Highlights Key Issues

Car tax changes set to take effect in April next year will see drivers of electric vehicles facing new Vehicle Excise Duty requirements. However, a new Tax and Regulation Manifesto from the Association of Fleet Professionals (AFP) is calling for certain vehicles to be exempt from these changes.

The AFP manifesto, released ahead of the 2024 General Election, argues that keeping Vehicle Excise Duty at zero for electric vans would aid businesses in transitioning to electric Light Commercial Vehicles (eLCVs). Additionally, the manifesto calls for certainty in tax planning by publishing Benefit-in-Kind (BIK) Tax Tables up to 2030.

Furthermore, the manifesto suggests offering tax breaks to employees who choose alternative, zero carbon modes of transportation such as walking, cycling, or e-scooting. The report also highlights the benefits of tax breaks for walking and cycling, similar to what is offered in the Netherlands, for both commuting and business trips.

Chief executive David Wells emphasized the importance of investing in and growing the logistics industry, stating that a focus on infrastructure and a national logistics network would bring benefits to the UK’s economy as a whole. Wells stressed the need for logistics to have a voice in government to ensure that industry needs are heard and to drive up the country’s productivity.

Overall, the proposed changes aim to make motoring taxation fairer while also promoting the transition to electric vehicles and sustainable modes of transportation.