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Go Green Or Pay Green

Kelly Phillips ErbNovember 11, 2007

The UK is pushing ahead with its plans for a greener country. Recommendations for a greener policy include an increase for drivers who opt for larger cars of up to £1,000 under a plan to force people to switch to greener vehicles. The Times is reporting that drivers who choose high-emission vehicles will face much higher excise duties and a purchase tax. But people who choose cars powered by alternative fuels and fitted with devices that reduce fuel consumption may be eligible for grants.

The Government has already raised vehicle excise duty to £300 for cars in Band G which produce more than 225g/km of CO2. The Band G rate is due to increase by an additional £100 next year. The government believes that the differential between classes of cars must be at least £300 to make a difference. It is currently as low as £40 between classes of cars.

Manufacturers will likely be given incentives to accelerate the introduction of hybrid cars — which have a petrol engine and an electric motor — and those that run entirely on electricity. UK policy is expected to focus on electric cars rather than alternative fuels.

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Kelly Phillips Erb
Kelly Phillips Erb is a tax attorney, tax writer, and podcaster.
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One thought on “Go Green Or Pay Green”

  1. vache asatryan says:
    November 12, 2007 at 1:12 am

    UK;s decision to focus on EVs is a smart one.
    US was once on the route to become a EV accepting nation but hey how needs EV when you got can get a Hummer?
    Especially Britain being a small country where most commutes are very short a EV solution is perfect. I mean most americans don’t actually drive out of their cities either making EV a solution for city dwellers like New Yorkers or Bostonians.

    Reply

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