To ask the Chancellor of the Exchequer how much tax is paid on the purchase of a new (a) Toyota Prius and (b) Honda Accord hybrid car. (132819)

These cars are subject to annual Vehicle Excise Duty under the carbon dioxide emissions graduated class for cars registered from 1 March 2001 onwards. Honda’s Civic Hybrid has a certified CO₂ emissions figure of 109 g of CO₂ per kilometre and Toyota’s Prius Hybrid has a certified CO₂ emissions figure of 104 g of CO₂ per kilometre.

These vehicles are therefore subject to band B CO₂ emissions graduated vehicle excise duty. In Budget 2007 the Chancellor built on Budget 2006 changes by further reducing this rate to £35 and freezing it until 2010-11. By announcing rates for future years the Government are providing future certainty and further sharpening the environmental signal to motorists to purchase more fuel efficient vehicles.

Cars purchased for private and business use are subject to VAT in the normal way. Under certain conditions cars that have been adapted for the carriage of a disabled person will be zero-rated. Charities and certain other eligible bodies (listed in HMRC Reference Notice 701/59 of March 2002) may also be able to purchase adapted vehicles free of VAT.