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Taxation of Motoring

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Policy & Resources Committee - P.2019/47

The States are asked to decide:-

Whether, after consideration of the policy letter entitled 'Taxation of Motoring' dated 23rd May, 2019 they are of the opinion:-

1. To agree, in principle, that a distance charging mechanism should be introduced as soon as possible and direct the Policy & Resources Committee to report back to the States with detailed proposals to introduce a distance charging mechanism.

2. To note that the Policy & Resources Committee intends to use its existing delegated authority to approve funding from the Budget Reserve to carry out further detailed research and a pilot exercise / trial to collect comprehensive data which could be used to calculate and model an appropriate charging structure for a distance charging mechanism, together with an assessment of the effect of any potential changes in behaviour.

3. To agree that an annual charge based on ownership of vehicles is not introduced.

4.  A. To agree that the rates of excise duty on motor fuel should not be varied in
          the 2020 and 2021 Budget Reports.

    Or, only if Proposition 4A shall have been defeated,

     B. To direct the Policy & Resources Committee to include proposals in the 2020 and 2021 Budget
          Reports to increase the rate of excise duty on motor fuel in line with inflation (RPIX).

     Or, only if Proposition 4B shall have been defeated,

     C. To direct the Policy & Resources Committee to include proposals in the 2020 and 2021 Budget
           Reports to increase the rate of excise duty on motor fuel to a level necessary to maintain the 
           real-value of the income raised by taking account both of inflation (RPIX) and any change in sales
           volume.
    
The above Propositions have been submitted to Her Majesty's Procureur for advice on any legal or constitutional implications in accordance with Rule 4(1) of the Rules of Procedure of the States of Deliberation and their Committees.

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Taxation of Motoring

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