The BVRLA has called for the government to address what it perceives to be the 'unfairî tax burden currently being born by the vehicle rental and leasing sector. The association has asked for cars to be made exempt from recent government proposals to hike taxes on some employee benefits, and has also highlighted a number of other areas in which the government could help the industry. Gerry Kearney, the chief executive for the BVRLA, said: 'HM Treasury must reconsider the company car taxation regime and the impact it has on a major tax revenue-generating sector. Whether it's the planned salary sacrifice proposals, the incoming 2% company car tax increase from 2017-18 or the decision to push back the removal of the 3% diesel supplement until 2021, our members and their customers have been disproportionally hit with a higher tax burden than other industries, and we're concerned about what impact these measures will have on demand for low-emission vehicles, not to mention the Government's air quality and road safety goals.î The Autumn Statement will be made by Chancellor Philip Hammond on November 23rd, and follows a number of consultations carried out by the government regarding issues in the automotive industry. As part of its submission, the BVRLA has also recommended the Chancellor review the vehicle excise duty (VED) refund rules, which currently restrict the amount of tax refunded to a company if a vehicle is disposed of in the first year. Rental companies could be heavily affected by the regulation from April 2017, after which they will be unable to get a full refund on any vehicles that emit more than 110 g/km CO2. Mr Keaney said: 'At a time when the UK economy and the automotive market require stability and reassurance from the Government, HM Treasury should revise the refund rules so that when a vehicle is disposed of in the first year, the refund is based on the first year rate, not the standard rate.î The Department for Transport has already said that it plans to introduce new bands for ultra-low emission vehicles within the company car system from 2020. The BVRLA has already responded to a consultation on the subject, with HM Treasury continuing to look at how best they can incentivise uptake of cleaner cars in the future.
