Motor Vehicles: Exhaust Emissions

(asked on 8th July 2020) - View Source

Question to the HM Treasury:

To ask Her Majesty's Government what assessment they have made of the potential to reduce carbon emissions by introducing a road usage duty, and whether they will publish any such assessment.


Answered by
Lord Agnew of Oulton Portrait
Lord Agnew of Oulton
This question was answered on 21st July 2020

UK Motorists currently pay fuel duty and VAT on fuel, which means that those who use the roads the most, and do so in higher polluting cars, pay more tax. In addition, the Government uses the Vehicle Excise Duty system to encourage the uptake of cars with low carbon dioxide emissions (CO2) to help meet our legally binding climate change targets.

However, technology is changing many aspects of the economy – including the vehicles we drive – and the government is considering how the tax system will need to adapt to manage those changes.

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