Friday, December 3

Why is this clean hybrid car taxed at almost the same rate as a Ferrari? | Money

TO The retired bishop who replaced a polluting diesel car with a much greener plug-in hybrid model has described the government’s environmental policies as “completely insane” after his road tax increased from zero to £ 480 a year.

The Rev. Robert Paterson, who lives near Evesham in Worcestershire, received the bill after switching to a second-hand BMW 330e Plug-in Hybrid Electric Vehicle (PHEV), which claims a maximum fuel economy of 200 miles per gallon and emits only 32 g. of CO2 per km, according to its official classification. It costs around £ 33,000.

The old diesel-powered 2014 VW Golf that BMW replaced – a car that will soon be deemed too polluting to be driven in London without incurring an additional £ 12.50 a day charge – generated no road tax.

Paterson’s new car has faced a 2017 change to the tax regime that imposed a higher charge on vehicles that cost more than £ 40,000 when new. It affects many plug-in hybrids as they are more expensive to manufacture. This means that homeowners face a tax surcharge of £ 335 a year for five years from the second year of ownership, whether they have ultra-low CO2 emissions.2 sports cars that emit or consume a lot of gasoline.

“I have chosen to drive relatively ‘green’ cars for 20 years. Although my Golf was considered green when I bought it, it is less so now, ”says Paterson.

“The BMW has been a revelation, especially in the way it is adapted to use in the city, as it often does not produce any emissions. Since the last time I refueled six weeks ago, it has driven 300 miles in electric mode and uses very little gas. “

His £ 480 a year is just £ 10 less than what he would pay if he had bought a Ferrari of the same age. Only 100% electric cars are still exempt from tax.

AA has called for reforms to a regime that its president, Edmund King, describes as “evil.”

A government consultation on the excise tax, launched in March last year, noted that the 2017 rules particularly affected sales of second-hand cars, “where the incentive for buyers to choose cars with lower emissions is reduced. “, and asked for opinions on whether the system should be changed.

“We have repeatedly urged the Treasury to reconsider this position and, although there has been a recent consultation, they have not yet released the findings,” says King.

Instead of offering incentives and encouraging motorists to get into cleaner, cleaner cars, the current tax regime is imposing higher bills on those who choose greener cars. It’s a bit messy. “

What particularly frustrates Paterson is that if you had bought a conventional petrol or diesel BMW, with a lower starting list price, you would be paying £ 155 a year to tax the car after the first year, even though it produces much more. carbon and fewer miles per gallon.

“Everything is crazy and needs an urgent change,” says Paterson. “Until batteries become more effective, PHEVs are a sensible way forward for many, so why are their owners penalized in this way, while the most polluting cars are left blameless? What am i missing here?”

The Treasury says: “Hybrid vehicles are an important technology for reducing emissions and our reformed excise duty system for vehicles seeks to reflect this while offering the greatest incentives for zero-emission vehicles and ensuring the sustainability of public finances to long term.

“Under the current system, all vehicles exceeding £ 40,000, except zero emissions, have to pay an additional expensive car supplement – those who can afford the more expensive cars bear a higher burden.”

Last month, Boris Johnson’s climate spokesperson, Allegra Stratton, caused some consternation when she revealed that she “didn’t feel like” switching to an electric car, as her third-hand diesel VW Golf “suited her so much better.”

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