Another CoMin Car Crash

Vehicle Duty Debacle

Proposals to increase vehicle duty being laid before Tynwald have been rightly condemned with a c5,000 petition calling for them to be abandoned.

Before the budget was announced, Liberal Vannin said that “Now is not the time” to impose higher taxes on individuals and businesses as they still cope with the economic consequences of the covid pandemic.

We condemn the current proposals for two reasons:

  1. The 10% increase in duty for the smallest cars will hit people on the lowest incomes the most.
  2. Now is not the time to levy duty on zero emission vehicles. The Isle of Man Government declared a Climate Emergency in 2019. It should be doing everything it can to encourage people to buy zero emissions vehicles. There should be a red light on vehicle duty for zero emission vehicles until at least 5% (c3,000) of the cars registered on Manx roads are EV.

For some time now, vehicle duty has been based upon emissions. Leave it as it is. A Mini should not have the same vehicle duty as a Ferrari. If duty is based on weight, the cost of taxing an older car might go up or might go down.   For example, our understanding is that an old Jag with a 3.5 ltr engine might go from £429 to £220 because it only weighs 1315 kg, whereas a Defender might go from £264 to £585 because it is 1955 kg. This makes no sense.

Liberal Vannin advocate that cars with internal combustion engines continue to be taxed on the existing schedule, and a new and fair vehicle duty for non-hydrocarbon vehicles is introduced as they become more prevalent.

For further information, please contact:

Lawrie Hooper, MHK, Ramsey, Leader, Liberal Vannin           473478

Paul Weatherall, Chair, Liberal Vannin               479436

2 thoughts on “Another CoMin Car Crash”

  1. Buying an EV will only really make sense when more accessible charging points are available. Those who rely on on-street parking have no chance of charging at home so will have to still rely on petrol / diesel cars and these people will generally be those who can least afford such a steep increase now.

    By all means make a charge for EV but at a flat rate and as for petrol / diesel, cars, leave duty as it is but with perhaps an inflation linked increase each year. In years to come, of course, the position will change but that can be looked at at that time.

    1. Good point. Yes, we’re some way off most people being able to contemplate replacing their cars with ev models. Very few second hand cars are available yet, for instance. Infrastructure needs to improve greatly, as you say, and financial incentives to switch should be maintained, not closed down.

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