Your views: removing the 3% diesel levy

  • Should the 3% diesel levy be removed?
  • We publish some of your top responses
  • Another chance for you to have your say

Last week we asked whether you agree with ACFO’s view that the 3% diesel levy on benefit-in-kind taxation should be scrapped.

We had several responses and it seems this is a hot topic. The views are split pretty much down the middle; some think the levy on company car tax should be scrapped and others think diesel cars deserve to be penalised - because it isn’t just CO2 that they emit.

Reader James Linsell-Fraser wants the 3% surcharge removed.

“I agree it should go and support all the reasons why and have done for many years.

“I recognise that this will potentially leave a shortfall in the government coffers, however a phased reduction or some other reasonably achievable incentive to reduce the surcharge (other than having to purchase a diesel hybrid) could be introduced.”

However, company car driver Dee Walsh believes a better bet is action on fuel prices rather than removing the levy.

“Diesels are still dirty, smelly, noisy and unrefined,” proclaims Walsh. “In the long run will a modern diesel stay as clean as they claim?

“Let’s just get petrol prices down. Diesel is for lorries, busses, tractors and boats. And yes I do drive a diesel (unfortunately).”

However, Rob Chisholm thinks it’s a lose/lose situation whichever way you look at it.

If anyone thinks any Government is going to remove the 3% loading without recouping the ‘loss’ from elsewhere then they need to think again – all scale charges would be looked at to compensate.

“Best not to disturb the hornet’s nest then. Better perhaps that some employers re-think the company car policies which state a diesel-only choice is available, and if the driver is travelling fewer than, say, 15,000 miles per annum to offer the driver the choice of a petrol engine instead.  There are many petrol engines these days that are offering a low level of CO2 meaning that the percentages are little different, and in the vast majority of cases petrol engine equivalent models have a lower P11D value than their diesel counterparts.”

Mr Chisholm closes with a salient point for anyone looking to lower their company car tax liability.

“The BiK anyone pays is in many cases is almost entirely in the drivers own hands, if they can avoid being too badge conscious.”

Do you agree with these points of view? Do you have an opinion you’d like to put forward? Then email us at and have your say.

Parkers' top tip:

To find out how much company car tax you'll have to pay on your next car use our company car tax calulator.