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Motor Vehicles: Excise Duties

Volume 472: debated on Monday 3 March 2008

To ask the Chancellor of the Exchequer what assessment he has made of the environmental consequences of levying vehicle excise duty based on a sliding scale of emissions. (190561)

In taking taxation decisions as part of the Budget process the Government assess a range of options, bringing all relevant environmental, social and economic factors into consideration.

The environmental signals provided by vehicle excise duty will help deliver reductions in CO2 emissions. For example, the number of vehicles in the three lowest CO2 emission graduated VED bands is forecast to grow significantly in the longer term in part due to VED reform.