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Labour's Road Tax Plans Unfair
July 10, 2008 11:10 AM
Dear Sir,
The government's plans to increase tax, retrospectively, on millions of cars could be as damaging to their prospects as the 10p tax debacle.
The Liberal Democrats have long argued for a "green tax switch" where income tax is reduced and that tax cut is paid for by taxes on the most polluting activities. The cars with the highest CO2 emissions certainly should be taxed at a far higher level.
However what the government has done is to increase vehicle excise duty as a way of filling its financial black-hole. It is a tax increase with no corresponding tax cut elsewhere.
Secondly it will hit millions of people who have already bought their car, and so penalises people rather than incentivising future behaviour.
The majority of people in this country support environmental taxes, but only when it is clear that they would pay less tax on their weekly or monthly wage.
The Government's terrible policy is not only bad for them politically, but, far more importantly, their botched handling of this issue could have set back the cause of a greener, fairer tax system.
Yours sincerely,
Paul Harrod
Prospective Liberal Democrat MP, Bristol North West
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