£3,300 new car tax to be proposed by green think tank

The levy is part of a £150bn package of measures, including a tripling of fuel duty over the next decade and a household energy tax, put forward by the Green Fiscal Commission (GFC).

The recommendations will be published on Monday by the GFC, which was created to develop greener government measures, and will be presented by one of its commissioners, Lord Turner, who is also chairman of the Financial Services Authority.

reg Barker, the Tory environment spokesman, Alan Whitehead, a Labour MP on the energy select committee, and Chris Huhne, the Liberal Democrat home affairs spokesman, will also speak at the launch of the 100-page report.

The GFC, which is chaired by Robert Napier, chairman of the Met Office, argues for a “fundamental rebalancing of the tax system” based on the “polluter pays” principle.

It wants to double the proportion of green taxes in the overall tax take from the current seven per cent, saying the green levies would be offset by cuts elsewhere to income tax and National Insurance contributions.

It also suggests a £300 tax on new cars, increasing annually to £3,300 by 2020.

The broad theme is for a raft of new ‘eco taxes’ aimed at curtailing activities that use natural resources or create pollution.

Paul Elkins, a professor at University College London and the author of the report, said: “It is really a question of moving a mindset. We’ve had it as a given that energy is cheap, so we have been wasteful. This has to change and the only way to do that is to make the polluters pay.”

Professor Elkins added that he was “hopeful” the report's recommendations will be adopted by the leading political parties.

No comments: