Gas-guzzlers Beaten Back by the Green Mobiles

The Society of motoring manufacturers and traders (SMMT) forecasts that sales of band G, the top road tax band (£300), cars will continue to fall over the coming year and that they will be overhauled by sales of band A and B (£0-£35), green, cars.

According to the Times, sales of the highest tax banded cars fell last year by 15 percent, their lowest level on record, while sales of low emission cars, in bands A and B, have leapt by 17 percent.

This could be attributed to the rise in fuel prices over the year, with petrol passing the £1 per litre figure, and the environmental concerns of drivers.

The government is planning to accelerate this change by increasing the tax on medium and high tax banded cars and offering concessions on greener models. The treasury had left medium sized car drivers from excessive rises, but a study recently published by the Department for Transport has found that drivers of the middle band cars were the most likely to switch to a greener model if they had to pay a hike in taxes.

Other methods being considered by the Government are purchase taxes and incentives to companies, who buy 55 percent of new cars, to buy greener vehicles.

January 31^st 2008