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SMEs operating diesel-fuelled vehicles hit by £1.4Bn unexpected tax bill

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Diesel surcharge to stay for five more years

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26 November 2015

Diesel drama

  • VW scandal blamed for continued surcharge clobbering diesel drivers;
  • SMEs in UK hit by £1.4Bn extra costs;
  • Green commitment and road investment softens the blow.

DIESEL-fuelled  drivers have been clobbered in the Autumn Statement thanks to Volkswagen’s emission scandal and a rising tide of fears over NOx pollution in cities.

Chancellor George Osborne has used the twin pressures on diesel fuelled vehicles as an excuse to do a U-turn and defer the planned scrapping of a 3% levy on diesel until 2021 in his latest spending review.

Paul Jackson, managing director of fuel and mileage cost specialist The Miles Consultancy (TMC) claimed the move will cost UK SMEs running mainly diesel engine company cars more than a £1Bn.

He said: “The emissions scandal has given the Chancellor the pretext to make a complete U-turn on diesel benefit-in-kind tax (BIK). The decision to delay scrapping the 3% surcharge will cost fleet diesel drivers £1.4Bn between 2016 and 2021.

“The review paper highlights the growing issue around real-world mpg and emissions. The government says it is waiting until 2021 because that’s when EU-wide testing procedures will ensure new diesel cars meet air quality standards even under strict real world driving conditions.”

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