In an bid to discourage motorists from buying new diesel-powered vehicles, a think-tank has proposed the introduction of an £800 first-year vehicle excise duty (VED) tax for diesel vehicles, as well as the re-introduction of the scrappage scheme for diesel vehicles only.
Richard Howard, Head of Environment and Energy at the Policy Exchange, said that car buyers should be discouraged from choosing diesel cars over petrol, hybrid, electric or LPG models.
He commented: "The problem with diesels, as exemplified by the Volkswagen 'dieselgate' scandal, is that they perform very badly in terms of local air pollution. Emissions standards have systematically failed to control NOx emissions from diesel cars and vans."
Diesel cars now account for 36% of cars on the roads of the UK today, a figure which has increased from 14% in 2001, and is in need of being reversed according to the findings of the Policy Exchange in partnership with King's College London.
The plans are designed not to penalise diesel vehicle owners who bought their cars in good faith, and so there won't be any increased taxes on diesel fuel or cars which are already several years old.
The VED increase to £800 for new diesel cars would help to reduce diesel car sales while also helping to raise funds of up to £500m per year for the proposed diesel scrappage scheme, Policy Exchange claims.
The scrappage scheme would be similar to the one the government ran in 2010, which encouraged owners of cars over ten years old to scrap them in return for a £1,000 government discount off a new car along with a further £1,000 from car manufacturers.
The precise details of the new scrappage scheme are yet to be confirmed, dependent upon whether the Policy Exchange proposals are implemented.
Image: Photokanok / freedigitalphotos.net