Tax benefits

Currently the main tax benefits from running an alternative fuel is 20 pence per litre duty rebate for bio-fuel to the next generation of bio-fuels and even biogas, such as methane which can be produced from land fill waste, but currently powers no cars that are commercially available. Mr Brown commented in his Pre-Budget Report : “I am extending the 20 pence per litre discount to include the next generation of bio-diesel, a discount we will offer to all new innovative fuels as they develop. I am also consulting prior to a Budget decision on extending the current 40 pence per litre duty discount for biogas.”

Many industry leaders are lobbying hard to get this discount increased to make the benefits of having an alternative fuel car a greater benefit to the driver, and with the targets for lowering the UK’s CO₂ emissions by 12.5% below 1990 levels by the period 2008 to 2012, as stated within the Kyoto Agreement, lowering the cost of fuelling a vehicle which inherently cuts down our emissions will surely be of benefit to all.

But currently, there's only tokenistic 'tax concessions' from Gordon, as Saab GB's managing director Jonathan Nash said. “A mere £10 reduction in Vehicle Excise Duty (VED) and a 20 pence per litre tax rebate on bio-fuels is not enough to stimulate this new market,” highlighted Nash.

Corporate companies are the main benefactors to becoming more pro-active with new discount schemes on having a green fleet of vehicles.

It is still “early days” but with the environment hot in the news and Parliament due for a major change in 2007 it is clear that further developments are going to be made to the vehicles on the market, what fuel we use and what it costs to travel.

In This Section

• Return to "Keen to go Green"
• Carbon Offsetting
• Fleet & Company Benefits
• Insurance
• Tax benefits
• Travelling Green
• Pros & Cons

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