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Excise Duties: Motor Vehicles

Volume 474: debated on Tuesday 22 April 2008

To ask the Chancellor of the Exchequer how much was raised from (a) vehicle excise duty and (b) fuel duty in each year since 1997. (199427)

I refer the hon. Member to the answer given by my predecessor the hon. Member for Wentworth (John Healey) to the hon. Member for Romford (Andrew Rosindell) on 2 May 2007, Official Report, column 1744W, and the answer I gave to the right hon. Member for Wokingham (Mr. Redwood) on 22 November 2007, Official Report, column 1050W.

The Treasury has published details of tax receipts as a matter of routine in successive pre-Budget and Budget reports. The most recent can be found in Table C6 of the Chancellor's 2008 Budget Report at:

www.hm-treasury.gov.uk/media/7/3/bud08_chapterc.pdf

To ask the Chancellor of the Exchequer (1) what the total revenue from Vehicle Excise Duty (VED) was in (a) 2006-07 and (b) 2007-08, broken down by VED bands A to G; (200047)

(2) what the total projected HM Revenue and Customs revenue is from Vehicle Excise Duty (VED) in (a) 2008-09, (b) 2009-10 and (c) 2010-11, broken down by VED bands A to M; and how much of that relates to the (i) standard rate and (ii) first year charge;

(3) what estimate he has made of likely changes in total carbon dioxide emissions from motor vehicles in (a) 2008-09, (b) 2009-10 and (c) 2010-11, as a result of the changes in rates of vehicle excise duty announced in the Budget 2008.

The Driver and Vehicle Licensing Agency (DVLA) administers and collects VED.

Budget 2008 reformed the VED structure to strengthen the environmental incentive to develop and purchase fuel-efficient cars. The reforms take effect from 2009-10 and 2010-11. They are forecast to result in rising carbon savings over time as the number of low carbon cars significantly increases. In 2020 the changes are forecast to deliver carbon savings of 0.16 MtCO2. The role of VED also needs to be considered in the context of the wider range of economic and other measures which influence motorists, such as fuel duty, company car tax, European regulations and the labelling scheme in car showrooms.

The following table shows the total revenue raised from VED bands A-G in 2006-07 and 2007-08. The disaggregated figures for VED revenues by CO2 emissions banding have been estimated by the DVLA based on DFT data. The figures for 2007-08 are provisional and subject to audit.

£ million

2007-08

2006-07

Band A

Band B

16.19

17.35

Band C

531.82

413.15

Band D

518.83

415.29

Band E

450.24

364.57

Band F

791.14

684.02

Band G

75.81

28.68

The following tables show the forecast of VED revenues from cars (rounded to the nearest £5 million) registered on or after 1 March 2001 in 2008-09, 2009-10 and 2010-11

Revenue figures standard rates

£ million

2008-09

A

B

20

C

645

D

610

E

580

F

880

G

185

Revenue figures standard rates

£ million

2009-10

2010-11

A

0

0

B

5

5

C

15

15

D

60

65

E

265

275

F

375

385

G

495

500

H

425

430

1

370

370

J

680

690

K

775

450

L

115

410

M

140

325

Revenue figures first year rates

£ million

2010-11

A

0

B

0

C

0

D

0

E

55

F

45

G

60

H

55

I

50

J

80

K

60

L

50

M

55