Environment announces new car tax plans

The department's amendment to its original plan for a first registration duty, which will be debated next month, was released in the wake of fierce public pressure against the initial proposals.

If accepted, these changes all come at a price for the department, with £1.6m. stripped out of the revenue forecasts.

The amendment states the loss of this money will have a profound impact on its being able to deliver on the strategy as envisaged.

'This reflects a slightly softer introduction of the Transport Strategy measures reflecting the reduced tax take from first registration duty,' it states.

The proposals are designed to have less impact on family sized cars than the original plan and also offer up discounted rates for second hand cars being registered for the first time.

Under the new scheme cars can be 50mm wider before being taxed, and although the emissions duty still kicks in at the same level, it is half the previous amount.

The width tax starts at the same rate - £600 - but cars can now be 1801mm wide before those buying it will have to stump up extra money on the forecourt. The maximum will still be £2,400 for 1901mm and over.

Emissions taxes kick in at the same level, on all engines 1001cc and over, but are now set at £200. The maximum charge of £3,200 still applies under the proposals. Extra bandings have been introduced for emissions to even out the shortfall.

The potential introduction of the charges provoked fierce debate, with the largest mass rallies in the island for many years, under the banner 'Enough is Enough.' The Guernsey Motor Trades Association launched what it described as its 'largest ever campaign' to fight the proposals.

The controversial taxes will, subject to States approval, come into force in March, instead of January as the department had initially hoped.

To mitigate the impact the department recommends taking £1m. a year from the money allocated from the capital reserve to build a bus depot, and reduce the amount it planned to take off fuel duty by 60%.

The funding loss means there will be a cut of a third in all spending relating to 'developing and promoting the alternative transport methods' such as pedestrian and cycling infrastructure, the amendment states.

Pictured: Environment members Barry Brehaut and Yvonne Burford