Theresa Villiers, Member of Parliament for Chipping Barnet, has welcomed the decision made by the Chancellor Phillip Hammond to accelerate plans to reduce Vehicle Excise Duty for electric taxis by exempting them from luxury car tax.
In 2017, in response to concerns expressed by Theresa and others, the Chancellor announced in his Budget that ultra-low emission electric taxis would be removed from the luxury vehicle bracket of Vehicle Excise Duty (VED). This will save drivers using the new electric taxi £1,550 (£310 per year for five years).
This change was originally planned to come into force in 2019, but the Chancellor has now confirmed that it will be introduced at the start of April.
Theresa said “I am really pleased that the Chancellor has listened to my taxi driver constituents and has agreed to bring forward this tax cut for the new ultra-low emission electric taxi.”
“Last year my constituents told me they thought it was unfair for an electric taxi to be put in the same VED band as a luxury vehicle. In the run-up to the 2017 Autumn Budget, I called on Phillip Hammond to reduce VED on electric taxis. I welcomed his promise in the Budget to do that, but I was worried about the delay in implementing the tax reduction.”
“So it’s good news for people in Barnet who are licensed drivers that they will now get the benefit of the tax cut in just a few weeks’ time rather than having to wait for another year to invest in a clean vehicle to help clean up London’s air.”
“The black cab is a London icon and it is great that the new ultra-low emission version of the vehicle will be playing an important role in improving air quality in London.”
Theresa Villiers is Vice Chair of the APPG on Taxis which was set up to highlight matters of concern relating to the taxi sector and has often spoken up for the concerns of licensed taxi drivers.