Budget 2017 – Black cabbies get £310 A YEAR tax break to go electric – but they’ll have to wait until 2019
BLACK cabbies have been handed a £310 a year tax break in today's Budget if they go green.
Chancellor Philip Hammond revealed the five year, £40,000 "luxury car tax" would be cut for zero emission cabs.
New all-electric London taxi costs £55,599 - but is exempt from 'luxury car tax'
All cars priced over the limit face a £310 surcharge for the first five years.
But from April 2019, taxi drivers will be able to buy an electric cab without having to stump up more than £1,500.
The new plug-in hybrid TX model - built by Chinese-owned LEVC - is priced at £55,599.
And a new look-a-like electric model from Metrocab is also in the pipeline and likely to be priced the same.
LEVC claims cabbies will save £100 a week on fuel on new model
A spokesman for the LEVC said: "The Chancellor has listened to our request to remove electric taxis from the ‘luxury car’ tax bracket.
"The change to Vehicle Excise Duty announced today will, in the long-term, incentivise more cabbies to go electric, contributing to reduced emissions and improved air quality across the UK.
"However, we will be making the case to Treasury to bring forward these changes to reward early adopters for making the electric switch."
LEVC bosses estimate switching to the all electric TX model will provide savings of £100 a week on fuel - equal to £25,000 over five years.
Cabbies upgrading from older models can net a tax break - and fuel savings
Coupled with the tax break, it's a huge boost for taxi drivers.
From January 2018, all new London taxis will have to be zero emissions, according to Transport for London.
In its Budget documents, the Treasury said it will now decide how to define taxis that would be eligible for the tax break.
The taxi road tax wasn't the only change with Hammond also rolling out a diesel tax on new cars.
And diesel company cars were also targeted by the clean air policies.