HC Deb 19 January 1995 vol 252 cc603-4W
Ms Primarolo

To ask the Secretary of State for Transport if he will define electrically propelled vehicles, road construction vehicles, road rollers, snow clearing vehicles, gritting vehicles, street lighting vehicles and vehicles used for short journeys between different parts of a person's land within the meaning of his proposals to receive vehicle excise duty exemption; and if he will estimate the expected revenue from each of these categories in each of the first five years of implementation.

Mr. Heathcoat-Amory

I have been asked to reply.

The changes to the system of exemptions and concessions to VED contained in my right hon. and learned Friend the Chancellor's Budget aim to bring the archaic system of exemptions and concessions up to date, to target special treatment where it is most merited, to simplify the complex current system, and to close opportunities for tax evasion. In line with these principles, the Finance Bill contains provisions such that:

  1. (a) electrically propelled vehicles, snow clearing vehicles and gritting vehicles will be licensed in the special concessionary class, paying VED of £35 next year;
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  3. (b) road rollers will be licensed in the special vehicles class, paying £135 or £150 depending on weight; and
  4. (c) road construction vehicles and vehicles currently claiming exemption because they do less than six road miles a week will license in the general tax class appropriate for the particular type of vehicle. Most vehicles doing less than six road miles a week will, in fact, move into the special concessionary class and pay £35.

It is not possible to make precise estimates of the revenue which will be raised each year for all these classes. Estimates to the nearest £0.5 million arc as follows:

£ million
Electric vehicles 1.0
Road construction 1.5
Road rollers 3.5
Snow ploughs negligible
Ice gritters negligible
Street lighting 0.5
Short journeys 4.0