Darling 'plans gas guzzlers tax'

12 April 2012

Chancellor Alistair Darling is planning to introduce a "purchase tax" of up to £2,000 on the most polluting vehicles, it has been claimed.

The idea is set out in a leaked Treasury paper ahead of Mr Darling's forthcoming Pre-Budget Report, according to The Sunday Times.

As well as the one-off charge at the point of purchase, so-called gas guzzlers would also be subject to higher road tax.

More fuel-efficient cars would be eligible for a £2,000 rebate, under the proposals.

Officials apparently acknowledge in the leaked document that the measures would be "presentationally difficult" but argue that they would also "strengthen the environmental signal".

The proposals bear a remarkable similarity to those contained in the Tories' Quality Of Life policy report, which was unveiled by David Cameron this week.

Under the Tory plans - none of which have yet been formally incorporated into party policy - there would be a new purchase tax on cars of up to 10% depending on emissions.

There would also be a sliding VAT scale between 5% and 17.5% and a new top band of vehicle excise duty of £500 - with the owners of "super-polluters" paying the most.

The Treasury declined to comment on the Sunday Times claims, a spokeswoman saying: "We never comment on leaks."

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