Friday, 11 December 2009

Government Announces Tax Breaks for Electric Vehicle Fleets

As predicted Alistair Darling's pre-Budget report included proposed tax breaks for owners electric vehicles. As my last post pointed out, the best way to get people to buy more eco friendly vehicles is to keep their prices down. Most people would be willing to drive a less polluting vehicles as long as the price is right. The report also contained good news for those operating van and car fleets who will also benefit from tax breaks.

The proposed tax breaks will encourage commercial and fleet buyers to upgrade to electric vehicles where possible. By avoiding company car tax fleet owners could make big saving by going green. Those operating in London will be financially punished for running older vans within the congestion zone.

“This will make business buyers much more interested in electric cars and vans,” Paul Everitt, CEO Society of Motor Manufacturers and Traders

Unfortunately electric vehicles are not yet a viable alternative for many fleet operators due to their inability to travel long distances in between charges. Major technological advancements need to happen before electric vehicles can take over from traditional vans for the majority of commercial enterprises.

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