I suppose the revised rates will not encourage someone to buy a low emitting car as much but £140 a year on a new car isnt enough to put people off I wouldnt have thought. As said the biggest effect will be on cars costing over 40k.March volumes were artificially high due to the changes in the VED.
Overall we're still at record levels YTD.
Fiddle with the tax rates and people will shift their pattern of purchase.
Muppets??? I wonder what they think of you.
The government can grant tax breaks to any activity or behaviour that they want to encourage but only until it becomes popular.Sorry Lennox even the Danish government have realised that they want the tax from pure electric cars and now Tesla are facing a much higher (although not as high as petrol) tax. Sales of Tesla have plummeted in Denmark.
Governments need the tax no matter what we drive.
You don't 'lose' the VAT.Jonny makes a good point. People will change their buying habit based on the tax changing. Yet still buy a brand new car and lose 20% in VAT let alone depreciation straight away!