Cars valued at or exceeding £40,000 are subject to the Luxury Car Tax (£1600 over 5 years). This should be abolished, or have the threshold raised significantly, for Ultra Low Emission Vehicles (ULEVs) as it impedes numerous Government initiatives and targets for transport and emissions.
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The tax contradicts the Government policies on reducing emissions, improving air quality, and rolling out ULEVs. Many comparative ULEVs which are suitable as replacements for petrol/diesel cars are higher priced by virtue of the advanced technologies and manufacturing processes required, and therefore are still more costly to produce. It is counter productive to offer grants for purchasing the vehicles and then tax consumers for running these vehicles, which help tackle the climate emergency.