At first glance, targeting the purchase of company cars makes sense. Lots of firms buy new cars, and their drivers tend to clock up more miles than private owners. So if they can be encouraged to buy electric cars, this will help reduce CO2 emissions on the roads.
But it raises a big question over fairness. Subsidising company cars provides savings to business owners and employees who may benefit from company car. Opting for an electric vehicle is becoming an increasingly obvious choice for managers and business owners, with a tax system designed to assist them.
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