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Tax break for Euro-5 with diagnostics
Page 7
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THE DEPARTMENT for Transport (DIT) has revealed that Euro5 trucks with on-board diagnostics (OBD) will be eligible for a tax rebate of up to L500 a year until 1 October 2009.
The Reduced Pollution Certificate (RPC) entitles the keeper of the vehicle to a reduction in Vehicle Excise Duty of up toi500 a year depending on the weight and axle configuration.
However, to qualify the Euro-5 vehicle must be fitted with OBD and torque control mechanisms that check and control emission levels. These systems ensure that an operator does not neglect to fill up with AdBlue and therefore fail to reach the required emissions standards. In the absence of AdBlue the torque control mechanism will kick in and the truck will lose significant power.
While the tax incentives will be welcomed by operators with compliant trucks, early-bird operators that bought Euro-5 trucks not fitted with OBD will not be so happy, because no tax incentives will be offered to anyone who went green before the launch of the RPC.
The TNT had failed respond to CM :v questions as we went to press. • All vehicles that are current]) entitled 10 an RPC and 'EI) discount under the existing particulate-based schemes will continue to be eligible, subject to meeting the required particulate emission levels.