Increased road tax costs to be accepted by VW Group

Any increase in taxes resulting from incorrectly reported CO2 emissions by Volkswagen should be charged to the company rather than vehicle owners, says group boss Dr Matthias Müller. Last week VW announced that 800,000 vehicles had CO2 levels set too low after the vehicle certification process was completed, with CO2 emissions the means by which car tax is calculated by the UK Government.

The recently revealed problems with 800,000 models' CO2 levels was the first time that anything other than NOx emissions had been confirmed by the company as being incorrect since the start of the VW emissions scandal. Considering that it is well recognised that official laboratory-calculated emissions are far lower than real-world levels, the variances, which are yet to be confirmed by the VW Group, must be dramatic for the company to comment.

As mentioned, Vehicle Excise Duty (VED) is directly linked to CO2 emissions, so any increase is likely to impact on the amount of tax due to the government. Considering tax bands are separated by only 10 to 15 g/km CO2, even a small increase in the official emissions levels could see the car sitting in a higher tax band than before. Dr Müller's letter to European Union finance ministers, seen and reported on by Reuters, asks countries to pass on additional costs to the VW Group rather than sting customers.

It is presumed that any bill sent on to the VW Group from EU treasuries would include any increase in CO2 emissions that result from the solutions outlined by the company to tackle the NOx defeat device fitted to millions of cars around the world - more than one million of which are in the UK.

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Chris Lilly

Author:Chris Lilly
Date Updated:9th Nov 2015

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