SMMT calls on British Government for tax stability

The Society of Motor Manufacturers and Traders (SMMT) in Britain has called on Chancellor of The Exchequer Gordon Browne to bring stability to taxation policies and greater clarity on promoting cleaner fuel and vehicle technologies ahead of next week’s budget.

The SMMT says that fuel duty increases above the rate of inflation are damaging to business. Last year's duty freeze was welcomed by the industry, but the SMMT believes there is a case to move away from ad hoc discretionary rises to a more direct and transparent link to the state of the global oil market.

The industry has urged for early guidance on incentives for the introduction of zero sulphur fuel. Environmental benefits will accrue more quickly if the industry is given time to plan for the introduction of engine technologies that support this cleaner fuel.