RMIF calls for VED refund change to be scrapped

Dec 17 2008

The Retail Motor Industry Foundation (RMIF) has called for the government to scrap its proposed changes to vehicle excise duty (VED).

Set to come into force on January 1st 2009, the alterations will prevent car dealers from applying for VED refunds of vehicles that they have taken in part exchange.

The RMIF claims that this will have a negative impact on cashflow, which is likely to result in additional expense for secured Car Loans customers looking to buy.

Paul Williams, chairman of the organisation, said the introduction of the new rules could not have come at a worse time.

He called for the changes to be abolished, or at least deferred until the economic situation improves.

"All dealers will be affected by this, and we will continue to communicate to the government how damaging the move could be, especially at this time," he added.

Earlier this month, the RMIF welcomed the decision of the Bank of England's monetary policy committee to cut interest rates to two per cent.

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