PracticeConsultingTax incentives to encourage use of green fuels

Tax incentives to encourage use of green fuels

The government is set to continue with its tax incentives strategy to encourage the use of environmentally friendly LPG fuel, following the release of a consultation document.

Link: The lowdown on LPG

Put out jointly by the Treasury and the Department for Transport, it invites stakeholders’ and users of LPG to air their views on how the government can ensure future support for the use of LPG and other natural gases.

John Healey, economic secretary, said: ‘Tax has played a powerful part in encouraging more use of green fuels. We plan to build on this progress.’

Currently, people that buy LPG cars or carry out conversions on their existing cars can qualify for a grant of between £600 and £1,200 depending on the level of reduction in emissions achieved.

LPG and natural gas pay a duty rate of 9p per kilogram and the government has committed to keeping this rate the same in real terms until 2004 when LPG is set to become more widely available.

Eight car and van manufacturers now produce LPG models, while many other models can be converted to take the fuel.

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