Call on government to end tax burden on leasing industry in Autumn Statement
Not content with battling the government’s proposed changes to salary sacrifice, the British Vehicle Rental and Leasing Association (BVRLA) is now calling on the government to address the unfair tax burden on the vehicle rental and leasing sector.
2.0 TSI 310 R 5dr 4MOTION
- 8k Miles p/a
Per Month, INC VAT
Initial Payment: £2,629.80
In a letter to the Chancellor Phil Hammond, BVRLA chief executive Gerry Keaney has not only reiterated their calls for cars to be exempted from recent proposals to hike salary sacrifice taxes but also highlighted a number of areas in which the government could support the rental and leasing industry.
Commenting on the submission, Keaney said: “HM Treasury must reconsider the company car taxation regime and the impact it has on a major tax revenue-generating sector.
“Whether it’s the planned salary sacrifice proposals, the incoming two per cent company car tax increase from 2017-18 or the decision to push back the removal of the three per cent diesel supplement until 2021, our members and their customers have been disproportionally hit.
“We’re concerned about what impact these measures will have on demand for low-emission vehicles, not to mention the government’s air quality and road safety goals.”
The BVRLA’s submission comes ahead of the Autumn Statement on 23 November, and follows a number of government consultations that will affect the automotive industry.
Separately, the Department for Transport has said that it would like to introduce new bands for ultra-low emission vehicles in the company car tax system beyond 2020.
The BVRLA has responded to a consultation on this topic as HM Treasury looks to explore how best to incentivise the cleanest cars into the next decade, during which time rapid innovation will deliver significant changes in the way vehicles are powered.