§ Mr. Chris Smith
To ask the Chancellor of the Exchequer what is the cost of not taxing company cars at their full value.
§ Mr. Lilley
[holding answer 12 February 1990]: The benefit of the private use of a company car is taxed by reference to fixed scale charges, but the value of private use to any particular employee depends on a wide range of factors. Information about these is not available, so it is not possible to provide an estimate of the aggregate extent to which the private use of company cars is undertaxed.