Motor industry bodies want car tax changes scrapped
As the fallout from the credit crunch gets worse, two groups representing the British motor industry have written to the government to ask for financial help.
Should taxpayers’ money be spent on supporting the motoring industry? What do you think of their other proposals to stimulate car sales?
The Society of Motor Manufacturers’ and Traders and the Retail Motor Industry Federation have sent a joint letter to the Chancellor of the Exchequer Alistair Darling asking the government to ease financial pressures on the motor industry.
Their requests include:
- Providing an increased Annual Investment Allowance (AIA) for expenditure on plant and machinery of £200-300,000 to encourage more sales.
- Drop the budget 2009 plans to reform business car capital allowances.
- Drop the budget 2008 plans to increase road tax.
- Review business rate relief.
Car sales in October were 23% down on the same month in 2007, and many car dealers are suffering and going out of business.
Should the government now act by offering help to the industry? What do you think of the SMMT/RMIF proposals?
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