Thursday, March 22, 2007
BUDGET: Duty on polluting cars to reach £400 by 08
CHANCELLOR, Gordon Brown, today, raised taxes on the most polluting cars in the UK as part of his budget.
The chancellor said that the excise duty on heavily polluting vehicles would rise to £300 pounds from £210 on 22March this year. The duty will be raised again in 2008 to £400.
The duty on environmentally friendly cars, such as the hybrid Toyota Prius, was frozen at £30.
The rates for graduated bands C-E, cars registered before 2001 and all light goods vehicles, will be raised by £5 in each of the next three years. The rates for graduated band F will rise by £10 in 2007-08, then £5 in each of the subsequent two years.
Petrol
Petrol duty has been raised in line with inflation for the second time in three months.
Gordon Brown said that petrol duty would rise by 2 pence per litre from October followed by another 2 pence in 2008 and 1.8 pence in 2009.
Brown raised fuel duty by 1.25 pence per litre in his pre-budget report in December ending a freeze that first came into effect on October 1, 2003.
Biofuels
The chancellor outlined an objective for Britain to have the lowest carbon cars using the least polluting fuels.
"I am extending to 2010 the biofuels duty differential worth 20p per litre, a fuel duty discount of 40% and I am also extending to 2012 the biogas incentive worth 40p per litre, a discount on fuel duty of over 80%," he announced.
The government will maintain the Compressed Natural Gas differential with main fuel duty rates in 2009-10, and will decrease the Liquefied Petroleum Gas differential by a further 1 pence per litre, in line with the Alternative Fuels Framework. Changes will be made to both rates in 2007-08 and 2008-09 in line with previous Budget commitments.
Chancellor, Gordon Brown, sprang a Budget surprise by cutting 2p off the basic rate of income tax, saying that the basic rate would be reduced from 22p in the pound to 20p from April next year.
DATED: 22.03.07
FEED: AW
The chancellor said that the excise duty on heavily polluting vehicles would rise to £300 pounds from £210 on 22March this year. The duty will be raised again in 2008 to £400.
The duty on environmentally friendly cars, such as the hybrid Toyota Prius, was frozen at £30.
The rates for graduated bands C-E, cars registered before 2001 and all light goods vehicles, will be raised by £5 in each of the next three years. The rates for graduated band F will rise by £10 in 2007-08, then £5 in each of the subsequent two years.
Petrol
Petrol duty has been raised in line with inflation for the second time in three months.
Gordon Brown said that petrol duty would rise by 2 pence per litre from October followed by another 2 pence in 2008 and 1.8 pence in 2009.
Brown raised fuel duty by 1.25 pence per litre in his pre-budget report in December ending a freeze that first came into effect on October 1, 2003.
Biofuels
The chancellor outlined an objective for Britain to have the lowest carbon cars using the least polluting fuels.
"I am extending to 2010 the biofuels duty differential worth 20p per litre, a fuel duty discount of 40% and I am also extending to 2012 the biogas incentive worth 40p per litre, a discount on fuel duty of over 80%," he announced.
The government will maintain the Compressed Natural Gas differential with main fuel duty rates in 2009-10, and will decrease the Liquefied Petroleum Gas differential by a further 1 pence per litre, in line with the Alternative Fuels Framework. Changes will be made to both rates in 2007-08 and 2008-09 in line with previous Budget commitments.
Chancellor, Gordon Brown, sprang a Budget surprise by cutting 2p off the basic rate of income tax, saying that the basic rate would be reduced from 22p in the pound to 20p from April next year.
DATED: 22.03.07
FEED: AW
