HC Deb 12 November 1980 vol 992 cc238-9W
Mr. Adley

asked the Minister of Transport if he will make a statement on his proposals for amending vehicle excise duty as it relates to the possession of vehicles.

Mr. David Steel

asked the Minister of Transport whether he has completed his discussions on the taxation of motor vehicles and in particular if he will exempt vehicles over 20 years old, not used all year on public highway, from his proposed tax on possession.

Mr. Foster

asked the Minister of Transport whether, in regard to the proposals to alter the method of taxing motor vehicles, he has considered the effect on those who wish to restore older vehicles, or to run their vehicles during the summer months only; and if he has considered the effect on the resale and trade-in value of used vehicles.

Mr. Fowler

I published a consultation paper in July seeking views on the possibility of making vehicle excise duty a tax on the possession of a vehicle, rather than on the use of a vehicle as at present. The purpose of such a change would be to reduce evasion of the duty, currently estimated at £75 million a year.

I have received a great many responses to the consultation paper. Many of them have come from classic car owners. Let me make it clear that it is not part of the Government's intention unfairly to penalise this group. The consultation paper already proposed special rates or exemption for vehicles over 40 years old and one of the things we will now be considering is whether this special status can be extended to take in more classic vehicles. Similarly, we are contemplating the possibility of exemption for long periods of laying up which would help people who are rebuilding or modifying vehicles which have been off the road for a long time. I shall also be considering the effect of the proposals on motor traders and I have met them recently to discuss this.

I have of course taken very careful note of all the representations we have received, and was grateful for the responses to the consultation paper. We have not entered into any firm commitment on the details and we will be anxious to avoid unnecessary difficulties when we reach our final conclusions. Let me emphasise that I shall be giving very careful consideration to all the comments and suggestions made to me. This will take time and a final decision is not imminent.