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Reduce tax burden, say car dealers

Monday, 07 Jul 2008 08:27
Car dealers are urging the government to take away (sorry) the tax burden on beleaguered motorists
Sue Robinson, the director of the National Franchised Dealers Association (NFDA), has pleaded with the government to reduce the tax burden on motorists.

"Uncertainty over the rising cost of motoring, along with higher overall living costs, have made consumers more cautious about buying a new car, but this could be eased if government clarified its intentions towards the motorist," said Ms Robinson.

The number of cars sold in June 2008 was down to 209,190, a fall of 6.1 per cent from the same period in 2007.

The NFDA believes the changes to the way Vehicle Excise Duty (VED) is calculated, coupled with rising fuel costs, economic and environmental concerns, have led to consumers becoming increasingly wary in the marketplace.

"Confusion over VED changes due to come into force next year mean that it is more difficult to calculate how much motoring is going to cost," Ms Robinson said.

"In combination with rising household costs, this means that many consumers will wait to see how the cost of motoring and the overall economy plays out over the next few months.

"Consumers still want to buy cars, but the current uncertainty is not conducive when thinking about making what is for many the second biggest purchase after buying a home.

"Reductions in interest rates, efforts to stabilize fuel costs, and clarification over the future cost of motoring are all within the government’s remit, and we urge them to look into these areas urgently."

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