The extra tax on buyers of new diesel cars imposed in the recent Budget is “counterintuitive”, according to Jaguar Land Rover sales boss Andy Goss.
From 1 April 2018, taxation for any new diesel car will increase by a tax band for the first year, unless that vehicle can meet new real-world testing standards, called RDE Step 2. However, these standards will not be introduced until 2020, meaning no new diesel model can yet be eligible for this exemption.
The diesel tax supplement for company cars is also rising from 3% to 4%.
Goss said: “We were surprised by the Budget. What is the rationale? It’s difficult to fathom what led to that [decision].
“If it had been a question of getting older diesel cars off the road, that would have been understandable. But to go for new diesels in the way they have is a real surprise.”
He also warned on the effect it would have on emissions: “It’s not good. CO2 will go the other way”, he cautioned, outlining that CO2 emissions will rise as people are pushed towards buying petrol cars which, on average, have higher CO2 emissions.
Goss’s comments echo that of the UK's Society of Motor Manufacturers & Traders (SMMT) boss Mike Hawes. In reaction to the Budget last month, Hawes said: “This budget will also do nothing to remove the oldest, most polluting vehicles from our roads in the coming years.”
The SMMT has also raised concerns about rising CO2 emissions, which will make it increasingly difficult for the UK to meet strict emissions targets.
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Naive thinking
The 1% rise in BIK taxation of diesel vehicles was in my opinion a badly thought-out decision by the government. It will probably do little to reduce new sales of diesel vehicles to businesses as the BIK taxation on a diesel is still significantly lower than a petrol equivalent. Most companies will not allow employees to choose a petrol vehicle unless they do a low mileage due to the significant increase in fuel consumption/ running costs.
Hybrids as a company vehicle are mainly only available to senior management due to the high lease/ operating costs, compared to a diesel or petrol vehicle due to poor residuals and real world fuel economy. Also any move to petrol will drive up the average Co2 and make it harder for the Government to meet their objectives. All it appears to have done is hit the average man in the pocket and penalise him for a decision that was taken 2-3 years ago. It would have been better to have applied the 1% increase only to new vehicles registered after March 1st 2018 in order to allow people to make an informed decision as to the vehicle they drive and pay tax on.
Preemptive cull of diesel vehicles...
One thought I could imagine this being good for is reducing the sales of diesel vehicles now to not have to deal with as many in the future. I am of the understanding that the degradation of diesel engines later in their life is a massive contributing factor to the emission of the polutants (hence why that new 56 plate 520d seemed like the clean choice at new, but is now the one most commonly bathing us in a thick black cloud of soot everytime they accelerate away in front). Putting these measures in place to slow diesel sales (which is happening organically anyway because of the loss in trust of diesel) will lessen the need to get them off the road 10/12 years down the line, much like what they are having to do with scrappage schemes now.
JLR's need to comment on this is purely because the majority of their vehicle sales come from diesel, and they haven't yet fully established their range in hybrid alternatives to compensate. Wait until their commitment to having "every model in their range available with an electrified choice" is realised, they will maybe soften their stance. It'll be a while though until they do a Toyota and start to drop diesel all together.
@marshydeluxe
Reducing the number of 67 plate, modern, clean diesels on the road won't do anything to stop your 56 plate 520ds, '07 plate Mondeos and the like will it? You've got the same end of the stick as the chancellor - the wrong one. Modern diesels don't smoke - they've never been so clean. My 3.0 litre diesel is 5 years old and still doesn't smoke.
Cobnapint
Cobnapint....Modern Diesels will and do smoke, if any fault occurs with the DPF or Injectors or EGR Valve then smoke will pour out and your Diesel Does not have to be smoking to be producing to much NOx.
NOx...?
Marshydelux was on about black clouds of soot coming out of 56 plate 520ds, so I told him to get with the program - modern EU6 diesels don't smoke.
Now you're on about NOx and faulty engine parts. ANY engine will probably smoke if it had something wrong with it. What's that got to do with the price of bread?
Cobnapint wrote:
There was a time EU4 were the cleanest they've ever been. And EU5. But you need to get with the program yourself if you believe that modern diesels will never smoke. Dont paint me as someone who completely vilifies diesel, I've just got a brand new diesel myself. But do I think they're anywhere near the way forward, not even close.
Sounds more like self interest
A small petrol car is going to have less CO2 emissions than a large diesel SUV and I think the point is to get more people buying petrol Hybrids in the short term with progression towards full Electric Vehicles. If you read between the lines of the Jaguar land Rover sales boss what he is really saying is we are going to lose some sales. Car manufactures keep saying the Euro 6 Diesels are the cleanest but that is a marketing con, the real wording should be Euro 6 Diesels are not as dirty As Euro 5.