REFORM OF COMPANY CAR TAX

That this House, while congratulating Her Majesty's Government in finally abolishing the special car tax, now urges the Chancellor of the Exchequer to introduce the reforms of company car taxation promised in his latest Budget statement, based not on a system of twelve price bands, which will exacerbate market bunching, distort consumer choice, encourage 'tax-beaters', inhibit the trend towards the standarisation of safety and security related specification items where the consequences might place a car into a higher tax band, distort product offerings between the United Kingdom and other EC markets and would positively encourage the migration of car prices towards the upper level of each price band, but on a progressive system based on a percentage of list price, providing an environment in which consumer choice and competition is not distorted.