The Department for Transport (DfT) has revealed that Euro-5 trucks with on-board diagnostics (OBD) will be eligible for a tax rebate of up to £500 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 to £500 a year depending on the weight and axle configuration of the vehicle. It does however require the Euro-5 vehicle to be fitted with OBD systems 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. If this is the case, the torque control mechanism will kick in and the truck will lose significant power. While the tax incentives will be welcomed by those that have compliant trucks, early-bird operators that bought Euro-5 trucks not fitted with OBD will not be so happy. No tax incentives will be offered to those that went green before the announcement of the RPC.
The DfT did not respond to CM before going to press.
The VED discount rates and administration process for the Euro-5 RPC scheme remain the same as those for previous RPC schemes. Vehicles that are currently entitled to an RPC and VED discount under the existing particulate-based schemes will continue to be eligible, subject to meeting the required particulate emission levels.
