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Tories plan supertax on gas guzzling vehicles By Charles Clover, Environment Editor and Toby Helm
Last Updated: 12:01am BST 13/09/2007

Motorists who buy environmentally unfriendly "gas guzzling" cars would be hit by a new batch of green "supertaxes" that would add thousands of pounds to the final bill under plans to be announced by David Cameron's advisers.

Your view: Has the campaign against 'gas guzzlers' gone too far?
Read the full Quality of Life report

In a triple assault on high-emission vehicles, they will propose a new "showroom tax" that would add 10 per cent to the cost of the biggest polluters, a new variable rate of VAT with the lowest charge for the greenest cars, and a new top band of vehicle excise duty that would add up to £200 to the annual cost of licensing "super polluters".

As a result, a car costing £30,000 that was ranked in the most environmentally damaging category would have £3,000 added in tax to the ordinary cost as well as paying full VAT of 17.5 per cent and additional road tax.

The ideas - drawn up to promote David Cameron's "green" credentials and encourage cleaner motoring - will be revealed in a policy report on the Quality of Life, written by Zac Goldsmith, the environmentalist and Tory candidate, and John Gummer, the former Tory environment minister.

The Society of Motor Manufacturers and Traders said the report, seen by The Daily Telegraph, was cause for "great concern" to motorists and tens of thousands of workers in the UK car industry whose jobs would be under threat.

A spokesman said people driving more expensive, less efficient cars were already being stung three times by the tax system - through the existing higher rate of excise duty, through petrol taxes, and because more expensive cars attract more VAT.

The report also suggests incentives for cutting energy use in the home, and taxes to encourage people to take the train instead of short-haul flights.

However, the detailed car tax proposals are likely to be the biggest talking point.

Insiders say the aim is to cut the relative price of diesels and hybrid vehicles, currently more expensive than their petrol-only equivalents.


The effect of the new showroom tax, combined with the a variable rate of VAT, would be to make a Lexus RX400H 4x4 petrol/electric hybrid around £3,500 cheaper than the petrol version of the same car, instead of £4,500 more expensive as it is today.

Such "showroom" purchase taxes are already used successfully in other EU member states, such as Italy, to make small, efficient cars cheaper and to increase the price of less efficient models.

The report, which is not binding on Mr Cameron, will suggest that the tax should range from 0 to 10 per cent depending on a car's carbon emissions. The VAT rate would vary between five per cent to 17.5 per cent.

The proposed new top band of vehicle excise duty for "super polluting" car would apply to those that emit more than 300 grams of CO2 per kilometre (g/km) such as Bentley Continental (410g), Porsche Cayenne (329g), Range Roger Sport V8 4.4 petrol (352g) and the Toyota Land Cruiser 4.7 V8 (387g).

The new band H would be £100-£200 higher than the present band G, which starts at 225g/km.

Steven Norris, the former Tory minister and a key contributor to the report, said the Tories wanted to let buyers choose what sort of car to buy.

"We don't believe in stopping you from buying a Porsche Cayenne but you might find something that looks just as rooty-tooty and is much cheaper because it is the most economical in its class."

John Gummer, chairman of the group, said: "This is not about puritanism or egalitarianism. It is about saving the planet."

"you might find something that looks just as rooty-tooty"

Range Roger Sport V8

If they keep this up any longer, I might start thinking that another 5 years of Labour wouldn't seem so bad after all

this is what I am now starting to swing toward. I had been considering voting anything but labour, figuring Tory was most likely to get them out, but they have gone absolutely barmy with green ideas lately - far too far, and are just planning on penalising and taxing everyone for everything we do - even more so than Labour already do. I guess things don't change

I will not be voting for any of them and, I hope a lot more of the British people do the same.

The twin turbo diesel version does 0 - 62mph in 7 seconds, 145mph and has emissions of ..... 213g/Km of CO2 and is thus in band F for VED, less than the proverbial Mondeo.

I have, of course, ordered one so I can feel smug.

this is what I am now starting to swing toward. I had been considering voting anything but labour, figuring Tory was most likely to get them out, but they have gone absolutely barmy with green ideas lately - far too far, and are just planning on penalising and taxing everyone for everything we do - even more so than Labour already do. I guess things don't change

I assume you will transfer your number plate. Spotting Malcolm has become a game with me....

The fact that the LibLabCon hate the BNP Sooo much suggests to me that they are actually doing something right!

The fact that the LibLabCon hate the BNP Sooo much suggests to me that they are actually doing something right!

Maybe they are doing something right but the BNP guy I heard on Radio 4 a little while back talking about "demongrelisation" and why we should "demongrelise" the country kinda made me think of another guy who had tried that in the past.