UK plans for CO2-based road tax system

According to press reports, the UK's Department for Transport (DfT) 
is planning to introduce changes to the UK's road tax system, where 
the tax rates would better reflect the vehicles' CO2 emissions. The 
objective is to discourage customers from buying large vehicles of 
high fuel consumption.

The UK sales of the smallest cars decreased by 10% this year, but 
demand for four wheel drive vehicles increased by 18%. Under the 
current system, predicted CO2 emissions from road transport will 
increase by 15% by 2020, while the government committed itself to 
significant CO2 reductions.

UK's tax rates for business cars already depend on the vehicles' CO2 
rating, thus creating another incentive to buy diesels as corporate 
vehicles.

http://news.bbc.co.uk/1/hi/uk/3202590.stm
18 October, 2003

Big car owners face tax hike

Larger-engined cars produce up to five times more carbon dioxide

Motorists who drive higher-polluting cars may have to pay more road 
tax under plans considered by the Department of Transport.
[more]

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