Vehicle Excise Duty (Hansard, 6 June 1995)

§ Mr. Martyn Jones
To ask the Chancellor of the Exchequer what are the proposed rates of new vehicle excise duty for(a) tower waggons, (b) street cleansing vehicles and (c) vehicles used in the construction industry. [26495]

§ Mr. Heathcoat-Amory
From 1 July 1995 tower wagons and street cleansing vehicles will pay the full rates of vehicle excise duty as set out in paragraphs 6 and 14 of schedule 4 of the Finance Act 1995. These can vary from £125 to £5,000 per annum, depending on weight and other considerations such as axle configuration. Copies of the Finance Act 1995 are held in the House of Commons Library. All vehicles used in the construction industry that weigh less than 3,500 kg will pay £135 VED per annum. Mobile cranes, works trucks, digging machines and road rollers that weigh more than 3,500 kg will pay £150. Other construction industry vehicles will pay the full rates of VED set out in the Finance Act 1995.

§ Mr. Martyn Jones
To ask the Chancellor of the Exchequer what is the estimated new revenue arising from the changes in vehicle excise duty; and if he will make a statement on their impact on costs to industry. [26493]
91W

§ Mr. Heathcoat-Amory
The Finance Act 1995 introduced a number of changes to vehicle excise duties that produced new revenue:

£ Million

Increase in excise duty on cars 55

Changes to the exemptions and concessions from VED 25

Changes to the definition of goods vehicles 5

Other changes 30

The freezing of duty on lorries cost £10 million in revenue.
The projected costs to industry of complying with the changes to vehicle excise duty can be found in the compliance cost assessment prepared and published by the Department of Transport.

	£ Million
Increase in excise duty on cars	55
Changes to the exemptions and concessions from VED	25
Changes to the definition of goods vehicles	5
Other changes	30