Asked by: Mark Pawsey (Conservative - Rugby)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what assessment his Department has made of the effect of the company car tax rate on consumer demand for electric vehicles.
Answered by Robert Jenrick
Together with the wider support the government provides, the company car tax system aims to encourage the uptake and manufacture of ultra-low emission vehicles (ULEVs) by providing an incentive for motorists to choose zero-emission and other low CO2 emitting models.
In 2017, sales of ULEVs were 1.8% of all new cars, and the UK was the second largest market for ULEVs in the EU.
Asked by: Mark Pawsey (Conservative - Rugby)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, with reference to the joint report of the Environment, Food and Rural Affairs, Environmental Audit, Health and Social Care, and Transport Committees entitled Improving Air Quality, published on 15 March 2018, HC 433, what steps the Government has taken in response to the recommendation in that report to more closely align fiscal incentives with policy objectives on air quality.
Answered by Robert Jenrick
As confirmed in the Government response to the joint report of the Environment, Food and Rural Affairs, Environmental Audit, Health and Social Care, and Transport Committees, the Government is committed to tackling climate change and air pollution. HMT sees tax and spending policy as playing an important role in achieving this, alongside other approaches such as regulation. The full government response to this report has been published here: https://www.parliament.uk/business/committees/committees-a-z/commons-select/environment-food-and-rural-affairs-committee/news-parliament-2017/joint-air-quality-response-publication-17-19/
Asked by: Mark Pawsey (Conservative - Rugby)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what assessment HM Treasury has made of the effect of the new Worldwide Harmonised Light Vehicle Test Procedure emissions standard and the use of correlated New European Drive Cycle values on Company Car Tax bands.
Answered by Robert Jenrick
At Autumn Budget 2017, the government announced that it would legislate, in a future Finance Bill, for the Worldwide Harmonised Light Vehicle Test Procedure (WLTP) to be introduced from April 2020.
Officials are working with industry to determine the effect of the move to WLTP and the equivalent New European Driving Cycle values.
Asked by: Mark Pawsey (Conservative - Rugby)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, when he plans to announce the rates of company car tax which will apply from April 2021.
Answered by Robert Jenrick
From 2020/21, the government will be introducing eleven new company car tax bands for ultra-low emission vehicles (ULEVs). These changes were announced at Autumn Statement 2016 to provide certainty of the future tax liability for company car employers and employees.
The government aims to announce the company car tax rates three years in advance of implementation.
Asked by: Mark Pawsey (Conservative - Rugby)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, if he will bring forward the introduction of lower company car tax thresholds for ultra low emission vehicles.
Answered by Robert Jenrick
From 2020/21, the government will be introducing eleven new company car tax bands for ultra-low emission vehicles (ULEVs). These changes were announced at Autumn Statement 2016 to provide certainty of the future tax liability for company car employers and employees.
The government aims to announce the company car tax rates three years in advance of implementation.