UK a ‘tax haven’ for polluting SUVs, says green thinktank

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https://www.theguardian.com/money/2024/mar/01/uk-tax-polluting-suv-green-thinktank-environment

The BMW X5 is among the large SUVs with a low vehicle excise duty in the UK compared with other countries in Europe. Photograph: Tony Vingerhoets/Alamy

First-year vehicle excise duty is a fraction of that in countries such as France and the Netherlands

Low taxation on petrol SUVs in the UK compared with much of Europe is inviting a glut of large, polluting luxury cars, according to an analysis by a green thinktank.

The tax paid when buying a new petrol or diesel SUV in the UK is only a fraction of the levies in neighbouring countries, including France and the Netherlands, and lower than many others in Europe, making it a “tax haven” for the bigger, less environmentally friendly vehicles, the report from Transport & Environment (T&E) found.

Britain’s first-year vehicle excise duty (VED) charge does relatively little to incentivise the purchase of less damaging cars, with the difference in buying a petrol SUV or a battery electric equivalent smaller in the UK than under most of Europe’s comparable acquisition taxes.

The first-year VED for a medium-large SUV, such as the BMW X5, costs £1,565 in the UK compared with a €60,000 (£51,400) tax in France, which also has a further surcharge on heavier cars.

https://www.theguardian.com/money/2024/mar/01/uk-tax-polluting-suv-green-thinktank-environment

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