Motoring is one hell of a big cash cow for the Treasury. Always has been. Similar to other sectors such as booze and tobacco.
They are easy targets to generate cash to fund other demands and, often cynically, use eco/health claims to bolster and justify the tax hikes. I worked in the cigar industry and dealt with HMC&E re duty. MASSIVE quarterly cheques paid over. We had on site Customs offices at one point, regular audits, one-off visits. Annual Treasury tax income was rising until it reached about £14billion ( if my memory is correct). This was a plateau and has since fallen. This loss of income had to be replaced. These days the knee-jerk justification for tax rises is eco and climate change based. We are about to face many more tax hikes to pay for the Covid spend. It is just a matter of when EV charging will attract tax.
As for EV for private owners it is expensive to buy into despite the incentives. The cars are significantly more expensive than equivalent ice versions. Why? When I look at the specs I ask myself what is the need for all the extra high tech toys? If a car comes onto the market with just the basics (and I mean basics) it would be cheaper and possibly entice more sales.
Dacia sell basic and cheap vehicles. Not refined but doing a job of A-to- B transport. Badge shame?
As for the existing subsidy on purchase price, how real is that? How are car manufacturers deciding on their price knowing there is a subsidy to include? Cynically I think it being used to inflate the up front price with a dangling carrot of “look, you are getting a discount”. Typical sales tactic to paint a good bargain deal.
Last edited by sospan; 10/09/20 12:32 PM.
