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Business drivers: 'drop diesel levy'

  • Company car drivers have say on their tax gripes
  • Majority in favour of ditching 3% fuel surcharge
  • Levy is out-dated as technology has improved

The diesel car tax surcharge is the biggest issue on Company Car Drivers' minds.

In a recent survey of Parkers users, more than 70% of company car drivers say the removal of the 3% tax surcharge for diesel cars is the most important issue the Government needs to address in the budget on March 23.

141 of the 196 voters said that removing the surcharge for diesel cars was the most important, with cancellation of the fuel price hike in April coming a distant second with 26 votes.

Industry watchdog ACFO - the Association of Car Fleet Operators - is urging the Government to act now on five major issues company car drivers are currently facing.

Commenting on the historic 3% benefit-in-kind tax supplement applying to diesel company cars, ACFO Chairman Julie Jenner said: 'This has been a feature of the current tax system since it was introduced in 2002. At the time diesel cars were nowhere near as environmentally efficient as they are today.

'As diesel cars have lower CO2 emissions than equivalent petrol engine models, drivers should not be financially penalised for selecting them.'

In our poll, the results on which issues were most important are as follows:

  • The removal of the out-dated 3% tax on company car benefit-in-kind taxation for diesel cars - 72% of votes
  • Cancellation of the inflation rate +1p a litre fuel duty rise scheduled for April 1, which could possibly add up to 5p per litre to petrol and diesel prices - 13% of votes
  • To reveal company car benefit-in-kind tax rates for at least 2013/2014 and ideally 2014/2015 too - 12% of votes
  • A full review of the Approved Mileage Allowance Payments (AMAPs) system to allow for the factoring in of a car's CO2 emissions as part of the process - 3% of votes
  • Vehicle excise duty for sub-3.5 tonne light commercial vehicles to be linked to their carbon dioxide (CO2) output in a similar structure to cars thus incentivising the uptake of low emission vans - 0% of votes