BVRLA calls for tax reliefs
BVRLA chief executive Gerry Keaney has urged Chancellor of the Exchequer Philip Hammond to address the unfair tax burden on the vehicle rental and leasing sector during his Autumn Statement on 23 November.
As well as calling for cars to be exempted from recent proposals to hike taxes on certain employee benefits, the BVRLA has also highlighted a number of areas in which the government could support the rental and leasing industry.
Gerry 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 with a higher tax burden than other industries, and 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 association has suggested that the Chancellor reviews the vehicle excise duty (VED) refund rules which restrict the amount of tax refunded when a vehicle is disposed of in the first year. This will impact rental companies from April 2017 as these companies will no longer be able to get a full refund for any vehicles emitting more than 110 g/km CO2.