The government has issued a call for evidence on excise duty for vans to encourage green vans. Just 0.4% of vans bought in 2016/17 was an ultra-low emission model.
Suggestions include:
- changing the £250 duty on all vans to promote cleaner ones
- excluding the use of red diesel for agricultural vehicles and fishing vessels.
Red diesel has a reduced rate of excise duty of 11.14p per litre as against 57.95p for ordinary diesel and petrol. About 15% of all diesel used is red diesel.
The consultation for excise duty on vans can be downloaded from here.
The consultation on duty on diesel can be downloaded from here. [18.05]