Motorists who switch from petrol and diesel vehicles to zero-carbon transportation should be rewarded with significant tax breaks, according to the Association of Fleet Professionals (AFP).
The AFP has highlighted that rewarding non-polluting drivers is important for reducing emissions and combating climate change.
The AFP’s 2024 Tax and Regulations Manifesto states: “Tax breaks should be offered to employees who decide to leave their car at home and undertake an alternative, zero carbon journey instead – be it walking, cycling or e-scooting.
“The Netherlands offer tax breaks for walking and cycling. These benefits should be offered for both commuting to the office and for business trips.”
The AFP also pointed to France as an example, where a tax-free allowance is given to employees who choose a mobility allowance instead of a company car.
They elaborated, saying: “We believe this will provide an increased uptake in the numbers of corporate employers and employees moving from a fixed car solution to something more flexible and environmentally friendly. In France, the allowance is currently €600 (£510) per annum.
“We would like to see an allowance of £2,000 based on the mode of transport.”
Currently, electric car owners in the UK benefit from a complete exemption of Vehicle Excise Duty (VED) and various Clean Air Zone discounts. However, these benefits are set to change in 2025, when EV owners will be required to pay the standard VED fee of £190.
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