£50 Duty for Zero Emission Vehicles

Tynwald will this month be asked to back the introduction of a £50 duty for zero emission vehicles.

The motion will be laid by Infrastructure Minister Tim Baker when members sit on March 16.

If approved, vehicle duties will continue using the current categories while gradually introducing ‘weight based duty categories’ which will remove the current engine capacity based duties while all other duties will rise by 1%.

So What Will Change and When?

April 2021:

  • A general price increase of 1% rounded up to the nearest pound

  • A diesel car and light and commercial vehicle surcharge on more polluting vehicles, that is those that do no meet Euro 6 emissions standards

  • A £50 vehicle duty for zero emission vehicles

  • A provision to pay vehicle duty for six months at a time for duty levied at over £200 annually, with a 10% premium charged

  • Rationalise and simplify duty categories

  • Rationalise pricing structures such that the minimum price for a fossil fuelled car or light commercial vehicle is greater than that of a zero emission vehicle

April 2022:

  • Move cars and light commercial vehicles that were registered on the island before April1 2010 to weight based duty, deleting the engine capacity based duty categories

  • Transfer all HGVs, minibuses, buses, coaches onto weight based duty, deleting the current complex pricing structure

  • Provide for the increase of duty rates by the application of inflation each year

April 2025:

  • Transfer all remaining vehicles on to the weight based duty, deleting the emissions based categories

  • Transfer zero emission vehicles onto weight based duty, initially discounted by up to 50%, but with a reducing discount until 2028 when duty will be payable as per any other vehicle on the weight based system.

The gov says the reasons for these measures are ‘to raise the revenue required to continue to maintain the road network and promote safety whilst encouraging the use of less polluting vehicles’.