How green is this car tax?
Updated on 02 July 2008
Is the reform of Vehicle Excise Duty an example of green taxation in action, as the government claimed?
The government justified their original proposals for reform of Vehicle Excise Duty as an environmental tax, saying they will encourage the use of more fuel-efficient cars.
But how green a measure is it really, when the tax penalises the existing ownership of a vehicle rather than its use?
Tom Clarke has been investigating.
