UK: New showroom tax to be introduced in budget this week

By just-auto.com editorial team | 10 March 2008

The UK chancellor Alistair Darling is expected to introduce a new showroom tax on cars.

According to the Sunday Times, the move is part of a series of 'green' taxes that will be announced in the budget this week. The charge would be based on the current seven CO2 emissions-based tax bands and could mean a charge of £2,000 on top band cars, which include SUVs, MPVs and some large estate cars.

The tax is reported to be influenced by a report by Professor Julia King that is due to be published on Wednesday, the second part of her review into reducing CO2 from cars.

The first part was published last autumn and recommended pursuing a strategy of electrification, supported by converting the energy sector to renewables, to achieve a virtually carbon-free transportation sector by 2050. The second part of the review focuses on policy measures that will be needed to achieve this.

According to the Sunday Times, the report will call for "urgent" measures to change consumer behaviour.