PracticeConsultingCompany car drivers say ‘yes’ to tax

Company car drivers say 'yes' to tax

Company car drivers would rather pay twice as much company car tax than use a smaller vehicle or take public transport.

The statistic, revealed in the RAC ‘Report on Motoring 2004 -Counting the Cost, Cutting Congestion’ reinforces the stereotypical view of the ‘image-conscious’ company car driver.

It found that company car drivers estimate they pay £1,843 a year in car tax, and expect this figure to rise to over £2,100 in the next two-to-three years.

However they are prepared to suffer a further £2,000 in car tax rather than ‘endure’ an alternative mode of travel.

The current company car tax system was introduced on 6 April 2002 and is measured on a car’s carbon dioxide emissions, based on a percentage of its list price.

Motorists perceive increases in road tax as a revenue generator for the Exchequer as opposed to an attempt to ‘finesse alternative behaviour’ and ease congestion or cut pollution, it said.

David Smith, managing director of Lex Transfleet, suggested that car congestion would only be relieved if car owners were given a more desirable way to travel.

‘The vast majority of revenues raised through motoring taxation need to be invested in a fully integrated public transport system that offers seamless end-to-end journeys throughout the country’.

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