Originally posted by Tim
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Another road tax petition
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Originally posted by Tim View Postthe biggest voice for classic car owners is the http://www.fbhvc.co.uk/ and they have been told if he keep hammering for this rolling tax free tax the goverment would scrap the system all togther
I wish they would make it a rolling 25 year thing but the lost revenue would be massivesigpic
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Just had the response back to the Classic Car Tax petition......no surprises really
Wednesday 20 January 2010
Save-old-cars - epetition response
We received a petition asking:
“We the undersigned petition the Prime Minister to help save Britain’s classic cars from the scrappage incentive, by re-introducing free road-fund licence for historic vehicles aged 25 years and older.”
Details of Petition:
“Amid the global economic crisis, the classic car market is a rare British success story, but the new scrappage incentive threatens to damage this by paying people to dispose of perfectly serviceable retro and classic cars. This will lead to jobs being lost in the retro classic car industries; meanwhile the vast majority of this scrappage money will go toward subsidising foreign car companies. Given that the most polluting stage of a car’s life is its manufacture, we therefore believe that it is a horrible waste to encourage retro and classic cars to be scrapped in favour of newer models with shorter operational lives. A properly maintained old car not only puts out significantly less emissions (including C02) than is permissible by law, it also prevents the need for other, more wasteful, cars to be produced and consumed. We therefore urge the protection of cherished, well-maintained cars by re-instigating the rolling 25-year road fund licence exemption for historic vehicles. This will help protect our motoring heritage and its manufacturing industries in the face of recent legislation.”
· Read the petition
· Petitions homepage
Read the Government’s response
The Government understands the arguments surrounding the Vehicle Excise Duty (VED) exemption for historic cars made in this e-petition, and answered a similar petition in February last year – see http://www.number10.gov.uk/Page14590 – and in June 2007 – see http://www.number10.gov.uk/Page12025.
As set out in the answers to earlier petitions, VED helps to support the Government’s wider policy objectives by providing a valuable source of revenue from which important public services may be funded. However, the Government is also committed to using VED as a means of bringing environmental factors into consideration when people choose to take ownership of a car.
In taking the 1998 Budget decision to freeze the rolling 25-year VED exemption for historic cars at 1973, the Government was considering the consistency of its environmental signal in VED policy. The Government has sought to bring an environmental focus to VED, through the introduction of CO2-based rates for cars registered from March 2001, and the application on graduated engine size-based rates for cars registered between January 1973 and March 2001. The exemption for cars built prior to 1973 should therefore be viewed as an exceptional concession, and the Government does not believe there to be a sufficiently compelling argument for extending it on environmental grounds.
The scrappage scheme was announced as part of the Budget on 22 April 2009 as a temporary measure to support the motor trades sector. The scheme is deliberately time-limited and cost capped (due to end by February 2010 or when funding is exhausted, which ever happens first), to ensure that the benefits of the scheme are balanced with the needs of other sectors including maintenance and repair businesses.
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