FLEETS have been told to follow the 'green' road by Chancellor Gordon Brown, with reforms to company car tax and Vehicle Excise Duty favouring cleaner and more fuel efficient cars. Tax changes will be introduced from April 6, 2002, based on a percentage of list price according to carbon dioxide emissions, but diesel drivers will pay a 3% penalty because of higher emissions.

The chancellor said consultation will take place with a view to introducing a waiver for very low emission diesels and discounts for dual fuel and hybrid vehicles. He also announced a gradual toughening of CO2 tax bands reducing to a low of 155 g/km in 2003/04 and 145 in 2004/05 .

The chancellor also announced that graduated vehicle excise duty would be delayed until March 1 next year and lower than expected rises in fuel duties with encouragement for ultra-low sulphur petrol.

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