Vehicle Excise Duty regime to hit car rental firms next year

News of Government plans to roll out the Vehicle Excise Duty regime next year has not been received well, with car rental firms expected to see a tax rise of £30m.

First announced in the Summer budget by George Osbourne, former Chancellor or the Exchequer, the new taxation system is only to affect cars registered after April 2017. However, with many car rental firms passionate about offering a modern service, will brand values have to be compromised?

Having a roll on effect new data shows that nearly 30,000 fewer car registration will be made following the change, with BVRLA chief executive, Gerry Keaney, pleading with the new Chancellor, Philip Hammond, to either crap or phase in the tax changes.

He said, “Rental companies account for a substantial proportion of new car purchases in the UK, and if these reforms go through, the Government will seriously damage its green agenda and its air quality goals.

“Many of these cars are ultra-low emission vehicles, and by introducing these VED reforms, the government will be adversely hampering its overall goal to drive the take-up of clean vehicles and improve road safety.”

If you are a car rental firm with an option on this new legislation then we would love to hear you thoughts. Simply leave your comes below.