Company cars may face new pollution tax

A NEW strategy to cut the greenhouse gases responsible for global warming could see company cars hit with a pollution tax.

Under proposals published yesterday, benefit-in-kind (BIK) tax would be payable on the amount of carbon emitted from the vehicle rather than the mileage covered, which is the criterion currently in use. The cleaner the car, the less the user would pay.

The new arrangement would also be expected to ease congestion by reducing the incentive for company car drivers to undertake non-essential business as they would no longer be trying to get the most out of the BIK mileage allowance.