Motor Vehicles: Taxation

(asked on 23rd January 2019) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, how much has accrued to the public purse from the increase in (a) vehicle excise duty and (b) benefit-in-kind for diesel vehicles since April 2018.


Answered by
Robert Jenrick Portrait
Robert Jenrick
This question was answered on 28th January 2019

Any diesel car that is not certified to the Real Driving Emissions 2 (RDE2) standard is liable to pay a diesel supplement on its Vehicle Excise Duty and company car tax rate.

At Autumn Budget 2017, the government published an OBR certified costing of the diesel supplement changes. In 2018-19, these changes are expected to raise £220 million, with this revenue being used to pay for a Clean Air Fund to help English local authorities with the most challenging pollution problems. Aside from the diesel supplement, VED rates for cars, vans and motorbikes increased by RPI in 2018-19 maintaining receipts in real terms.

The costings can be accessed at: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/661428/Autumn_Budget_Policy_costings_document_web.pdf

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