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Artic sales slump blamed on government

14th December 2000
Page 10
Page 10, 14th December 2000 — Artic sales slump blamed on government
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Which of the following most accurately describes the problem?

II Government confusion over truck taxation is being blamed for a slump in artic sales.

The Society of Motor Manufacturers and Traders says indecision over changes to the reduced pollution certificate (RPC), which entitles operators to a £1,000 rebate on vehicle excise duty, caused a near 30% drop in sales last month.

SMMT chief executive Christopher Macgowan says the pre-Budget state ment in early November failed to clear up the "muddled gloom" over the issue. "For large fleets in particular, road tax is an important cost in an intensely competitive business, which explains operator and manufacturer frustration at what they see as government indecision."

A spokesman for the Department of Transport says a revised RPC scheme is likely to come into force next month (January). Because requirements for the rebate will be tightened to bring the UK into line with the rest of Europe, he claims that, if anything, there was an incentive to buy trucks last month.

"Because RPC is a percentage of VED which is being reduced in cast, the value of the rebate will in future be less as well," he explains.

Sales of trucks and artics over 3.5 tonnes exceeded 50,000 to the end of November; up 5.4% on the same period last year. MAN, Daf, Scanla and Renault Group all made significant gains.