Tax stays for diesel motors
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.rs OFFICIAL — road tax is on the way out.
The road fund licence, a tax that dates almost to the beginning A the motor-vehicle, will be phased out in favour of increased Fuel taxes.
But the Government has not (et taken any decision on how .o tax diesel fuel, William Zodgers announced this week n the Commons.
It will consult interested parties on how best to tax iiesel-driven goods vehicles, as it had not yet come to any firm conclusions on how much this transport sector should contribute to its road track costs. It did not believe that increased dery taxes were the answer.
"The number of diesel engined vehicles is small in proportion to all vehicles and even the proportion of nonprivate diesel vehicles is quite tiny," he said.
The Government believes that the new tax arrangements, in conjunction with the provisions of the 1978 Transport Act, will increase the mobility of rural people and more people will be able to run private cars. Increased revenue support will also ensure that public transport helps more people.
When CM's reporter suggested that this might result in a conflict of interests, Mr Rodgers said: "This might be the effect if the public does desert public transport, but we don't know what the outcome will be."