NFU and Minority Report both say no to tax hike on 4x4's

Almost a third of ministers sitting on the Environmental Audit Committee have called on Government to reverse its decision to increase car tax until the impact has been properly assessed. The news comes as the NFU is writing again to the Treasury asking for a derogation from any increase for genuine working farm vehicles.

The NFU is concerned at the likely impact to farm businesses if the proposals to increase car tax for 4x4s, announced in the March 2008 budget, go ahead. Now the minority report by MPs sitting on the EAC has backed fears that the retrospective aspect of this rise would see 4x4s, purchased since March 2001, unfairly included.

Farmers and growers living in upland areas, where there is no option but to use a 4x4 would be particularly hit by the proposed increase which could see their car tax rise from £210 to £440 at a time when increasing energy and input costs are already impacting on farms. The NFU is writing to the Treasury to ask for:

• A derogation from road tax increases for genuine working farm vehicles

• More research into the benefits against additional costs to the tax payer to stop 'ineffective green taxation' and

• Research and development into lower emitting 4x4 cars for use on farms

NFU Deputy President Meurig Raymond said: "These 4x4 vehicles are essential working tools for many farms, and the proposed re-banding will see them unfairly disadvantaged. The findings of the minority report are a step in the right direction and show that more research and evidence must be gathered to assess the actual benefits of the proposals. This includes the impact to farm businesses and yet further costs to food production."