Drivers call for Reeves to perform Budget U-turn on car tax changes launching next year
The Society of Motor Manufacturers and Traders (SMMT) is urging the Chancellor to rethink the proposed significant changes to car taxes that are set to take effect next year.
Starting in April 2025, double cab pick-up trucks will be classified as cars for tax purposes related to benefits in kind and capital allowances.
The automotive industry association has alerted that the suggested tax modifications will impose extra financial strain on companies that rely on these vehicles.
Independent workers, agricultural producers, construction companies, and utility providers may soon experience substantial rises in their expenses due to the new regulations.
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Motorists are urging the government to reconsider and cancel the planned changes to car taxes.
This request to rethink the decision follows the earlier Government's short-lived effort to put similar plans into action, which quickly reversed course.
These actions would have resulted in anyone buying a double cab pick-up truck after July 1, 2024, facing nearly a five times rise in their personal tax expenses.
This could have significantly affected drivers of popular vehicles that can carry over 1,000kg, such as the Ford Ranger Wildtrak.
The suggestions were swiftly scrapped after a strong negative response from drivers, and HM Revenue and Customs stated that it has "paid close attention" to the outrage.
The SMMT is advocating for the Government to uphold HMRC's February decision, claiming that altering the tax regulations could negatively impact growth opportunities in the sectors involved, as reported by Fleet News.
Recent statistics indicate troubling trends, as registrations for pickups fell by 20.4 percent, totaling 3,012 units in November.
The drop in new pick-up registrations is happening alongside wider worries about how upcoming tax changes could affect the commercial vehicle industry.
In a statement made in February, Nigel Huddleston, who previously served as the Financial Secretary to the Treasury, explained that the reversal was essential to limit the effects of increased expenses.
The Ford Ranger Wildtrak stands out as one of the most favored double cab pickup trucks from Ford.
Even with worries in the pickup truck market, the overall light commercial vehicle sector demonstrated robust performance, achieving growth for the fourth month in a row.
Mike Hawes, the CEO of SMMT, stated that while there is enthusiasm for zero-emission vans in Britain, it is not keeping up with the government's goals, and the market share is currently declining this year.
