An increase in new car tax has been suggested by the Green Fiscal Commission (GFC) in a move which would see annual increases result in the figure reaching £3,300 by the year 2020. The proposal is part of the GFC’s £150 billion package proposal which also include a household energy tax and the tripling of fuel duty over the next 10 years.

The new recommendations will go public early next week as the GFC strives towards measures aimed at developing greener a government. The public release will be made by the head of the Financial Services Authority Lord Turner who is part of the commission board.

The launch of the 100-page report will also feature speeches by the Liberal Democrat spokesperson for Home Affairs Chris Huhne, Conservative Party Environment spokesman Greg Barker and Labour select committee energy member Alan Whitehead.

The new tax moves are based on the principle of ‘polluter pays’ which has been promoted by the GFC. The committee, under the chairmanship of the Met Office’s Robert Napier, also recommends a fundamental rebalance be applied to the existing tax system. The group also wants the proportion of green taxes to be doubled saying the rise would be offset by tax cuts in other areas along with greater contributions to National Insurance.
 
The GFC is at the forefront of the government eco-tax initiative which aims to address pollution creation and the use of natural resources. The committee hopes to change to public’s mindset and make wasteful polluters pay for their carelessness.