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Vehicle Excise Duty

Volume 410: debated on Monday 18 August 2003

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To ask the Secretary of State for Transport whether he intends to extend reduced rates of vehicle excise duty to cars converted to LPG/autogas that were registered before March 2001; and if he will extend the powershift programme of grants to cars that are more than five years old. [130726]

Rates and structure of vehicle excise duty are a matter for the Chancellor in his budget. In deciding these rates he weighs a large number of social, economic, environmental and other factors.The Chancellor announced in Budget 2003 that the Government would be consulting stakeholders on how best to ensure that future support for road fuel gases continued to reflect environmental and other policy objectives, with a view to announcing decisions on future duty rates and other forms of support in the 2003 Pre-budget Report. A joint Department for Transport, Treasury and Customs and Excise consultation document "Road fuel gases and their contribution to clean low-carbon transport: Establishing a consistent and durable framework of Government support" discussed the issues and invited comments by 17 September. The Government are now considering the responses received.