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News > Environmental protection regulations > The UK is considering imposing a tax on air pollution from cars.

The UK is considering imposing a tax on air pollution from cars.

2018-04-19

According to a Financial Times report on the 13th, the British government is considering taxing car owners and urban builders who contribute to air pollution in order to improve air quality in British cities. Chancellor of the Exchequer Philip Hammond announced a consultation on a car tax to encourage the development of more environmentally friendly transport and to increase costs for users of urban construction equipment using low-tax "red diesel." Currently, the tax on commercial light vehicles in the UK is £140 regardless of pollution level. Although it will increase to £150 in April, there will be no significant difference between older models with high nitrogen oxide emissions and newer, low-emission models. The automotive industry is trying to promote the benefits of the latest diesel engines, which emit the same amount of nitrogen oxides as gasoline cars but reduce carbon dioxide emissions by one-fifth. However, British and EU car buyers are gradually avoiding this technology in anticipation of bans on older models and policies discouraging the use of gasoline. Data from the Society of Motor Manufacturers and Traders (SMMT) shows that diesel sales in the UK fell by 17% last year, and new car sales in February fell by 35%, down from 44.5% in the same period last year. Last year's UK budget announced a £500 million investment to promote electric vehicle development and a tax increase on new diesel vehicles and company cars. In a speech on Tuesday (March 13th), the Chancellor of the Exchequer also announced a public consultation on the use of red diesel. This diesel is mainly used in agricultural vehicles and heavy machinery, and its use on general roads is prohibited. Its tax rate is lower than that of regular diesel. Currently, red diesel costs 11.14 pence per liter, while regular diesel costs 57.59 pence per liter. The government's public consultation will consider whether stationary construction machinery or generators cause air pollution. After the consultation period, the tax rate may be increased to encourage builders and other users to use more environmentally friendly alternatives. Source: Green Trade Initiative Office (2018-03-15)

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