New car tax plan could reduce emissions

A new idea has been put forward by CentreForum in an attempt to lower road costs and lower emissions.

The idea behind the new car tax plan is that road tax for normal car owners should be scrapped, and instead those who choose to buy sports-cars that use huge amounts of petrol should be charged a one off hefty fee.

Both environmentally friendly and thrifty, the proposed car tax is intended to please everyone.

"Replacing vehicle excise duty with a one off emissions charge on new cars would cut 2.6 per cent off total UK carbon emissions and lower running costs for motorists," a new report from think tank CentreForum says.

In addition, those with cars who do not use as much petrol would be given a subsidy. This is intended to encourage car owners to buy more environmentally friendly cars.

"Cars with emissions below the one per cent level (of emissions) would receive a subsidy. Cars above this level would attract an emissions charge," it states.

This plan is also targeted at car manufacturers.

When thinking about their newest creation, CentreForum believes that manufacturers will look to make the lowest emission-giving car available.

People will want to buy the car in order to be under the one per cent level of emissions and thus gain the financial reward.

According to the report, UK carbon emissions will be down 2.6 per cent in just 15 years if this scheme goes ahead.

The Energy and Climate Change Secretary Ed Davey is reported to have been impressed with the proposal and welcomes the change.

"I welcome this report. It is exactly the sort of innovative thinking we have come to expect from CentreForum," he has said.

Whether or not the pitch will be accepted by the government or not is yet to be seen, but CentreForum certainly sees this as a step in the right direction to making Britain more environmentally friendly.