Author:

ROBIN ROBERTS

Drivers are half-hearted in their backing for so-called eco-friendly cars.

Half have told the IAM that they would not consider a greener car even if VED tax breaks were increased, although they think it’s fair the emissions are counted.

Company car drivers may care to disagree, however, since low emissions cars are central to containing rising benefit in kind company car tax.

Currently, a low emission car – such as a MINI Cooper D with CO2 emissions of just 99g/km – currently qualifies at the 13% company car tax band.

But due to increasingly stringent HMRC taxation policy, the band rises to 14% the next financial year and to 15% the year after, taking the amount a 20% tax payer has to pay for company car tax from £419 to £484.

The increase is minimised because of the low 99g/km CO2 emissions of the MINI Cooper D. But more CO2 polluting cars would cost the driver more in tax.

Another IAM finding – and an interesting one – was that  32pc think parking permit prices should be based on the size or length of the vehicle, the more space it takes up, the more is paid.

Twenty-nine per cent think everyone should pay the same. Only five per cent of respondents felt that the CO2 emissions the vehicle produces should influence permit costs.

Low Emission Zones are slightly more popular.  LEZs were introduced in London in 2008 to reduce pollution from heavy diesel vehicles.  Forty-six per cent of drivers think they that they should be introduced for private vehicles, 41 per cent disagree.

Twenty-two per cent of motorists think that driving has no impact on global warming.  This is in line with other surveys that show 7 per cent of people think global warming is not happening and seventeen per cent believes it is panic about an exaggerated threat.

IAM chief executive Simon Best said, “Eco-friendly vehicles haven’t got the appeal so much so motorists are willing to pay higher costs in VED to compromise. Motorists aren’t fully convinced of how low CO2 emissions are beneficial to them, or society.”

“While more can be done to increase awareness about the benefits of eco cars, drivers can do their bit by changing to green driving to help reduce CO2. Looking ahead and anticipating hazards will mean less stopping and starting and a smoother journey.”

Good driving habits should be cultivated as part of company car policy and you can look at our business car driving advice for useful tips.