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TED bands to be clarified at last
Page 7
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• The Treasury has announced there will be a clarification of the Vehicle Excise Duty (VED) banding system, amid fears that the current ambiguity could leave operators at risk of prosecution.
The finance bill, released on Wednesday (16 April) as part of the Chancellor's Budget, is expected to address the Vehicle Excise and Registration Act 1994 which still refers to vehicle taxation by the old system of weight and axle configurations.
In December 2001, a new system was introduced which offers more flexibility to operators wishing to plate a vehicle at different weight and axle structures. But the wording of the legislation does not clarify the flexibility intended by the government.
Gill Harding, owner of boat transport specialist Davlyn Marine Services welcomes the news. He faces prosecution by
Greater Manchester Police for allegedly running an artic taxed at the wrong rate (CM 22-29 Aug 2002).
"I just keep my fingers crossed," he says. "I rang them back saying I wasn't intending to pay because I got it in black and white from Swansea that I was fine," he says.
The Freight Transport Association's regional policy manager Sally Thornley says she is "absolutely delighted" that the issue will be looked at, but remains cautious about the details before reading the bill later this week.
"The ETA wrote to the DVLA asking for them to instigate a change and it appears that this has happened," she says, We are concerned that operators are not fully protected: the last thing we want is confusion overtax."
• See Budget analysis, page 12.